China warns South Korea: Sanctions loom over US exports
China threatens South Korea with sanctions for exporting products with Chinese minerals to the USA. China has key resources and technology to significantly impact the US economy.
China has warned South Korea that it could face sanctions if it continues to export products containing Chinese rare earth minerals to American defense companies, according to the "Korea Economic Daily," which cites government and corporate sources.
The Chinese Ministry of Commerce has communicated to Korean companies through letters, stating that those using Chinese rare earth metals to produce transformers, batteries, electronic displays, electric vehicles, aerospace, or medical equipment could be affected.
China is employing these export restrictions in response to the US tariffs on Chinese goods, which are currently at 145 percent on imports from China, writes FOX Business.
Markets rebound
On Tuesday, financial markets in the USA saw gains after previous declines. The Dow Jones rose by over 600 points, while the S&P 500 and Nasdaq increased by 1.7 percent and 2 percent, respectively.
These gains came after Monday's declines, which were driven by concerns about the progress in trade talks and President Trump's criticism of Fed Chairman Jerome Powell. In his statements on Truth Social, Trump urged a cut in interest rates, arguing that inflation is low and energy and food costs are decreasing.
The International Monetary Fund has lowered its economic growth forecasts for the USA and other countries due to high tariffs and trade uncertainties.
US economic growth is now projected to be 1.8 percent, which is 0.9 percentage points lower than the January forecast. Global growth is expected to be 2.8 percent, a decrease of 0.5 percentage points. These adjustments result from the tariffs announced by Trump and the trade responses from the USA's partners.
