Tags: tungsten | biden | tariff

Biden's Bungling of Tungsten Tariffs Threatens America's Security and Industry

Biden's Bungling of Tungsten Tariffs Threatens America's Security and Industry
(Dreamstime)

By    |   Monday, 24 June 2024 01:57 PM EDT

President Trump's tariffs were wisely aimed to safeguard American industries from Chinese competition. However, President Joe Biden's decision to slap a steep 25% tariff on tungsten and its products from China starting August 1st is nothing short of disastrous. With China controlling over 80% of global tungsten production, and the U.S. lacking significant domestic production, Biden's move reveals a profound lack of foresight.

Instead of nurturing a vital domestic metals industry, this decision burdens U.S. industries reliant on tungsten, including defense production. The Biden administration seems oblivious to the dire consequences, further strangling American businesses already reeling from economic challenges.

Dependence on China for tungsten is arguably America’s least known strategic vulnerability. Tungsten’s unique properties, particularly its incredible strength and the highest melting point of any metal, make it indispensable for many products. From advanced semiconductors powering the AI revolution to drills in oilfields and the munitions used at a high rate in Ukraine, tungsten is crucial. The U.S. military requires tungsten for many essential uses. By catering to China and neglecting to prioritize domestic production, Biden’s administration jeopardizes America's national security.

It is long past time for the U.S. to break free from its reliance on China and take decisive action to safeguard critical resources. The time for complacency is over - America's economic and national security hang in the balance.

Instead of imposing tariffs that make American dependence on Chinese tungsten more costly without encouraging any alternative, Biden should focus on revitalizing domestic mining and production capabilities. This means incentivizing American companies to explore and develop tungsten resources at home. Such a strategy would not only ensure a steady supply of this critical metal but also create jobs and bolster the economy.

President Trump’s approach to tariffs was strategic, aiming to shield American industries from unfair competition and strengthen national security. Biden’s move, in contrast, seems to be a desperate attempt to appear tough on China without understanding the intricate dynamics at play. By targeting tungsten, Biden is hitting American industries where it hurts most — in their ability to produce, innovate, and defend.

Furthermore, this tariff will increase costs for American manufacturers who rely on tungsten for their products. These costs will be passed on to consumers, exacerbating existing economic woes for American families. It’s a lose-lose situation for the U.S., with the only beneficiary being China, which remains the dominant player in the tungsten market.

The Biden administration’s lack of a coherent strategy for dealing with China’s dominance in critical minerals is a glaring oversight. The U.S. needs a comprehensive plan that includes boosting domestic production, diversifying import sources, and investing in alternative technologies. Without such a plan, America will remain vulnerable to supply chain disruptions and geopolitical pressures.

America cannot afford to be complacent. We must prioritize domestic production of critical materials, reduce dependence on foreign adversaries, and ensure our industries and military have the resources they need to thrive and protect our nation.

Biden’s tungsten tariff is a misguided policy that harms American interests. It’s time for the administration to rethink its approach, put American industries and security first, and take concrete steps to secure our supply chains. America’s future depends on it.

_______________

Lewis Black is a Director, President, and Chief Executive Officer of Almonty Industries, the only major tungsten mining company outside China and Russia. Its operations are located in in Spain, Portugal, Australia and South Korea.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
President Trump's tariffs were wisely aimed to safeguard American industries from Chinese competition. However, President Joe Biden's decision to slap a steep 25% tariff on tungsten and its products from China starting August 1st is nothing short of disastrous.
tungsten, biden, tariff
565
2024-57-24
Monday, 24 June 2024 01:57 PM
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