Former White House Council of Economic Advisers Chairman Tomas Philipson said on Newsmax Saturday that China’s tightening of rare earth mineral exports underscores why the White House is determined to move pharmaceutical manufacturing back to the United States.
China’s latest restrictions on rare earth exports are deepening trade tensions and prompting renewed discussion in Washington about supply-chain dependence on Beijing.
Philipson said on “Wake Up America Weekend” that China’s decision to expand controls over key rare earth elements and technologies highlights the urgency of repatriating vital industries such as pharmaceuticals.
“The rare earth situation that they’re holding back on — that is very indicative of why the White House wants pharmaceuticals back in the U.S.,” Philipson said. “They’ve already shown that they’re willing to restrict very important things that we care about.”
His comments followed President Donald Trump’s announcement on Truth Social that the United States will impose a 100 percent tariff on Chinese goods, in addition to existing duties, and implement export controls on all critical software starting Nov. 1. The post triggered a market drop on Friday as investors braced for the next phase of U.S.-China trade friction.
Beijing’s new measures, announced Thursday, add five rare earth elements to its export control list and require foreign companies using Chinese materials to meet new compliance standards. China, the world’s largest rare earth producer, also expanded oversight of semiconductor-related technologies ahead of Trump’s expected meeting with Chinese President Xi Jinping.
Philipson said the escalation is “a warm-up” for the two leaders’ talks, suggesting both sides are positioning for leverage. “We’re up to 150% now with China,” he said, referring to cumulative tariff levels. “It’s clear that China is taking the hard road here.”
Rare earth elements are essential components in advanced electronics, electric vehicles, and defense technologies, making their flow a central issue in U.S.-China economic strategies. The new restrictions come amid ongoing debates within the administration about securing domestic production of critical materials and ensuring independence in the health and technology sectors.
Philipson contrasted the administration’s approach toward China with its policies toward U.S. allies, saying the situation is “a little different when we don’t have our adversaries in Europe,” where he suggested tariffs should not be as high.
Information from Reuters was used in this story.
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