Not an export ban: What Trump's tantrum means for markets

Beijing’s move wasn’t tactical, it was strategic

“The world is getting more and more fat tailed.”

- Philo

News hit on Friday that Trump was going to respond to China restricting the export of rare earth elements and other materials.

The US is dependent on rare earth exports by China because the Chinese effectively control the global supply for these critical minerals… To put it simply: This is a major problem for the Americans (and the Row).

Remember: trade war announcements are very noisy at their inception and only clear out (i.e. the signal) with time — but let’s go with what we have right now.

Let’s unpack what Trump’s tantrum really means for markets — and for us.