As tensions between China and the US continue to escalate amidst a protracted trade war, China has implemented significant export restrictions on rare earth elements, crucial for various high-tech industries and defense projects. The halt in exports includes critical materials used in fighter jets, raising concerns in the US over its supply chain vulnerabilities. In retaliation to US tariffs, which have reached as high as 145%, China is leveraging its dominance in rare earth production as a strategic weapon. This move is expected to create volatility in global markets and disrupt US manufacturing processes, leaving American industries scrambling for alternatives. Analysts warn that these restrictions could have dire implications for the US defense sector and contribute to an ongoing economic crisis.