Highlights

• China controls rare earth mining, refining, and magnet production, creating a potential economic chokehold on U.S. industrial capabilities.
• REEx calls for an Operation Warp Speed-level effort to develop a full-spectrum U.S. rare earth supply chain with public-private investment.
• Recommended actions include:
  • Activating allied supply chains.
  • Creating strategic REE stockpiles.
  • Leveraging Defense Production Act to federalize magnet manufacturing.

In a 2 AM post on Truth Social, (opens in a new tab) President Donald Trump declared Chinese President Xi Jinping “extremely hard to make a deal with,” revealing deep frustration as negotiations over rare earth exports stall amid a worsening trade standoff. “Very tough,” Trump wrote, confirming escalating tensions just weeks after the Geneva agreement aimed at easing bilateral friction.

The outburst comes as Beijing continues to “slow-roll” export licenses for rare earth-containing magnet alloys—materials essential to U.S. defense, electric vehicle (EV), and high-tech manufacturing. While stock markets rallied, critical industries remain exposed, and U.S. media have largely downplayed the magnitude of this supply chain crisis. At Rare Earth Exchanges (REEx), we stress this is not a temporary hiccup—it’s a systemic threat, and the time for industrial complacency is over.

A Message from REEx to the President

Mr. President, your Truth Social post describing Xi Jinping as “very tough” reflects the reality: China currently holds the cards in the rare earths game. Beijing controls not only the mining but also the critical downstream refining and magnet alloy production that powers everything from F-35s to EV drivetrains. The April 4 export licensing regime—though bureaucratic in appearance—is, in effect, a calibrated economic chokehold on America’s industrial core. The Geneva agreement has not defused the threat. If anything, China is leveraging ambiguity to disrupt without formally breaching the deal.

Rather than escalate rhetorically, pivot strategically. Recognize this as a wartime-level industrial challenge. The U.S. needs a comprehensive, full-spectrum rare earth supply chain, encompassing mining and separation, as well as magnet production, at scale and with speed. This will require more than a handful of pilot projects and tax credits. An Operation Warp Speed-level effort, backed by tens of billions of dollars in public-private investment, must be launched immediately with tight alignment among the Departments of Defense, Energy, and Commerce.

Allies must be activated—not just rhetorically, but contractually—Fast-track supply chain agreements with Japan, Australia, Canada, and South Korea. Keep the mandate that DOD and DOE procure only non-Chinese rare earth products by 2027. Maintain a standing stockpile of key rare earth elements (REEs), such as dysprosium and terbium. And pass legislation to federalize magnet manufacturing as a critical defense capability under the Defense Production Act, at least for the short run. Rebuilding this supply chain won't win headlines in a week, but it will define industrial sovereignty for a generation and lead to a real legacy.

Finally, own the message. Liberal and conservative media and MAGA influencers have failed to cover this crisis, leaving Americans uninformed. Check REEx daily.  Use the bully pulpit to explain what’s at stake: national security, industrial jobs, and global leverage. China just played its hand. Now it's your move—make it count, Mr. President!