Companies like Apple that depend on rare earth metals have nowhere to turn, but China
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“China’s threat to clamp down on exports of rare-earth metals poses problems, because those exports account for more than 80% of U.S. rare-earth imports, according to the U.S. Geological Survey,” Sophia Cai writes for Barron’s. “China not only mines the minerals but also has most of the world’s processing capacity.”
“Apple and other tech firms might take a hit. Trade tensions took their toll on Apple stock at the end of last year and in the latest escalations. Shares tumbled around 40% in the final 3 months of 2018 and nearly 16% since the beginning of May, and may drop even further if rare earths become the latest casualty in the trade war,” Cai writes. “Apple stock was down 0.48% to $177.38 on Wednesday.”
Cai writes, “Goldman Sachs analysts wrote last week that Apple is likely getting ready for its annual ramp-up of new iPhone production, to prepare for fall introductions, ‘so even a short term action affecting production could have longer term consequences for the company.'”
