We are still within the sequence of energies described in Newton’s Third Law of Motion, “every action has an equal and opposite reaction.” In this case, Apple, already badly bruised by Trump’s tariffs and their impact on its business, will now take another kicking as nations react to those oddly calculated trade taxes. Europe is gunning for Apple’s services, while China is about to stick some of the world’s rarest components behind its own trade wall.
The third law
China, predictably, isn’t happy. Not only has it slapped a reciprocal 34% tariff against US goods, but it also introduced export restrictions on rare earth materials — this will have a direct and significant impact on tech, as these are used in almost every electronic device.
That includes Macs and PCs, smartphones and tablets, as well as weapons systems, energy-generation tech, and electric cars. China produces around 90% of the world’s refined rare earths and the new export restrictions are being applied against exports to all countries. The exports haven’t been banned, but the latest move does give Beijing the strategic power to restrict them or even turn them off. (Not all is lost, of course. Other nations also have some of these materials, including Canada, for example).
This story originally appeared on Computerworld
