China produces 80% of the world's rare earth elements. They are used in weapons, cell phones, hybrid cars, and magnets.
China does not have the means to match the US in the total number or amount of tariffs. But China can strike back in other ways. One critical way would be to cut off the US supply of rare earth elements.
Bloomberg reports Xi’s Trip to Rare-Earths Plant Stokes Talk of Trade Retaliation
Shares in JL MAG Rare-Earth Co. surged by their daily limit Monday after state news agency Xinhua said the Chinese president had stopped by the company in Jiangxi. Official news outlets give regular updates on the whereabouts of top leaders, sometimes leading to share spikes on the belief that companies have been handed official backing.