NextFin news, In November 2025, the Trump administration, led by President Donald Trump who took office in January this year, is actively reshaping America's trade relations through targeted tariffs and evolving diplomatic negotiations. Notably, the US is concluding near agreements with India and Switzerland to mitigate some tariff barriers that had previously strained bilateral trade. These negotiations in Washington D.C. aim to address longstanding trade imbalances and open new avenues for economic cooperation. The US Customs and Trade Office, alongside Treasury officials, have been instrumental in drafting these tariff adjustments, with the aim to stimulate American exports and stabilize prices for consumers.
Simultaneously, China, in a strategic counter-move, has tightened its grip on rare-earth elements (REEs), critical to a multitude of industries including defense technology. According to reports from November 2025, Beijing has restricted US military access to these vital minerals, which underpin advanced electronics, missile guidance systems, and other defense applications. The rare-earth embargo reflects China's intent to leverage its near-monopoly status—controlling approximately 80% of the global rare-earth processing capacity—to exert geopolitical influence over the United States.
The rationale behind these maneuvers is multifaceted. Trump's tariffs on India and Switzerland have been part of a broader trade protectionist stance intended to reduce the US trade deficit and bring manufacturing jobs back home. Engaging India and Switzerland signals a tactical shift toward selective tariff relief to foster strategic alliances that can counterbalance Chinese economic dominance. Meanwhile, China's rare-earth restrictions are a geopolitical counterweight aimed at preserving its regional leverage amid an ongoing US-China strategic rivalry.
Examining the causes, President Trump's tariffs stem from his administration's America-First policy, prioritizing national economic security and reducing dependence on foreign supply chains. India, as a rising global economic player with a large market, represents a critical partner for US trade diversification. Negotiations with Switzerland also reflect the US desire to optimize trade relations with high-income, innovative economies. On the other side, China's rare-earth export controls reveal Beijing's long-term strategy to weaponize its resource dominance, especially as the US military increasingly incorporates advanced technologies dependent on these materials.
The impact of these developments is significant. Potential tariff adjustments with India and Switzerland could improve supply-chain resilience and lower costs in critical sectors ranging from pharmaceuticals to machinery. This might help US industries remain competitive amid inflationary pressures. Conversely, China's control over rare-earths imposes substantial risks to US defense readiness and technological innovation. The defense sector, which relies on a secure supply of REEs like neodymium and dysprosium, faces increased vulnerability unless alternative sourcing or recycling technologies advance rapidly.
Data from the US Geological Survey indicates that over 70% of US rare-earth imports currently come from China—a strategic dependency that has drawn bipartisan concern in Washington. Efforts to develop domestic rare-earth mining and processing projects have been sluggish due to environmental and regulatory challenges. Consequently, reliance on China’s export policies introduces supply chain fragility that could hamper US military modernization and industrial competitiveness.
Looking ahead, this dynamic suggests a bifurcation in global trade and resource control. The US's partial tariff reprieve with India and Switzerland may signal a more calibrated trade policy approach seeking multilateral cooperation. However, China's hardline stance on rare-earth exports underscores continued resource-based geopolitical competition that could fuel further technological decoupling.
US policymakers might accelerate investments in domestic rare-earth production, strategic stockpiling, and international partnerships with countries like Australia and Canada that hold substantial rare-earth reserves. Technological innovation in REE recycling and substitution materials will also become a high priority to mitigate supply risks. On the tariff front, successful deals with India and Switzerland could open pathways for the US to strengthen export markets and build alliances capable of counterbalancing China’s economic influence.
In conclusion, the Trump administration’s evolving trade and resource strategies in November 2025 highlight the complex interplay of economic, technological, and geopolitical factors shaping global power structures. While tariff negotiations with India and Switzerland present opportunities for trade recalibration, China’s rare-earth export restrictions expose vulnerabilities with far-reaching implications for US defense and industrial policy. Monitoring these developments will be crucial for businesses, policymakers, and investors planning for a rapidly shifting international economic landscape.
