Jim Cramer talks the pros and cons of the tentative trade deal between the U.S. and China

Rare Earth Minerals Dependence and Geopolitical Risks - The US is heavily dependent on China for rare earth minerals, creating a strategic vulnerability [1][2] - China's control over rare earth mineral licenses poses a risk to US manufacturing and defense industries [3] - Trade war initiated without securing rare earth mineral supply chains was a strategic oversight [2] - Reliance on Chinese materials for military hardware, especially for defense of Taiwan, is a critical concern [3] Alternative Sourcing and Strategic Partnerships - Brazil possesses 21 million metric tons of rare earth mineral reserves, representing 1/5 of global reserves, which is 10 times more than the US [5] - Vietnam has significant rare earth reserves and an integrated supply chain, making it a potential partner [7] - Australia holds 2 million metric tons of high-quality rare earth reserves, presenting another sourcing opportunity [8] - Developing domestic rare earth projects, such as the New Mexican project, is crucial for long-term security [8] Policy Recommendations - Urgently establish deals with Brazil, potentially waiving the 10% reciprocal tariff, to secure rare earth mineral supply [6] - Negotiate with Vietnam to eliminate tariffs in exchange for co-development rights to their rare earth resources [7] - Initiate "Manhattan Project" style initiatives in Brazil and Australia to refine and process rare earth minerals [6][8]