Buckle Up, Bucko!

Things are gunna get a lil bumpy

Disclaimer: This is not financial advice. Speak with a financial expert.

Worse than the Great Depression…

…are words that should echo through your mind during the coming period.

For those of you unaware, the introduction of tariffs against China by Donald Trump is causing the Chinese economy to implode. In retaliation, China has blockaded 7 rare earth exports (which applies to everyone, not just the US). Currently the US does not have the manufacturing base for these rare earths.

Contrary to belief, it isn’t a lack of access to raw material in the ground (rare earth is a bit of a misnomer); what the US lacks is the ability to refine and separate the ores. They only had one processing facility back in 2000, and it was ironically bought out by the Chinese and closed.

What Will The Blockade Likely Affect?

Examining the rare earths being blocked, we can see what sort of industries are likely to get affected: