It's no longer a big secret that commodity stocks make up a large part of my portfolio, as I've often written posts about them.
Right now, the conflict between China and the USA is once again about rare earths for heavy magnets. Trump is threatening 200% tariffs if China does not deliver. One thing is clear: if China does not supply rare earths to the USA, everything in the automotive, technology and defense sectors will come to a standstill in a relatively short space of time. You could say that the 200% tariff would not generate any revenue for the USA, because China would no longer export anything there and, on the other hand, the US economy would come to a standstill in large parts.
I am therefore convinced that the US government will continue to do everything it can to reduce this dependency. The main beneficiaries of this will be
$A412UH USA Rare Earth Inc.
and also $LYC (+5.03%)
Trump's tariff threats fizzle out in China
Asia's stock markets were predominantly negative on Tuesday. While Japan, South Korea and Malaysia are down by up to 0.9%, other markets are little changed. Shenzhen even rose by 0.7 percent. China's stock markets are thus ignoring the latest threats from US President Trump. The previous evening, he threatened the country with tariffs of up to 200% if it did not supply magnetic building blocks made from rare earths.
