Are Trump Administration's Critical Mineral Tariffs Driving Up U.S. Manufacturing Costs Before America Can Replace China?

Highlights

• Tariffs on Chinese-origin gallium add over $4,200/kg in duties, pushing delivered costs to roughly $19,200/kg before freight and margins
• American manufacturers absorb tariff costs immediately while domestic refineries and processing plants take years to build
• European and Japanese competitors may avoid U.S.-specific Section 301 surcharges, creating a structural cost disadvantage for American buyers
• USTR previously excluded unwrought germanium from Section 301 duties in 2018, acknowledging that taxing irreplaceable inputs harms domestic industry
• REEx warns that tariffs cannot substitute for building mines, refineries, and magnet factories—America must construct supply chains, not just restrict imports