Trade tensions between the U.S. and China have escalated as China tightens export controls on rare earth materials, crucial for the U.S. tech and semiconductor sectors. The move comes amid former President Trump's threats of imposing 100% tariffs, which are currently facing legal scrutiny in the U.S. Supreme Court. Vice President Vance's recent conciliatory remarks have temporarily calmed market fears, leading to a rebound in futures and crypto markets. China's new export licensing requirements for high-performance rare earth magnets and semiconductor materials underscore its dominance in the sector, posing challenges for U.S. industries seeking alternatives. The MSX Institute's analysis suggests that legal and industrial constraints may limit the effectiveness of Trump's 'TACO' strategy, as the U.S. struggles to scale domestic production. Investors are now closely monitoring legal developments and industry data, indicating a reduced impact of political rhetoric on market dynamics.