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In recent days, the United States has been facing growing economic and trade instability, with repercussions on financial markets and strategic commodities.
On May 19, the yield on U.S. government debt securities reached its highest levels in the past two years after the rating agency Moody’s revoked the prestigious triple-A rating for U.S. Treasury bonds.
In particular, 30-year bonds exceeded a 5% yield, signaling investor concerns.
One of the main drivers of this financial tension is the tax reform proposed by President Donald Trump, which includes significant tax cuts and could further weaken the already fragile public finances.
At the same time, trade tensions between Washington and Beijing have pushed Western companies to seek new sources of rare earth minerals, which are essential for technological manufacturing.
China, which dominates the global supply chain with 70% of extraction and 90% of processing, has restricted exports in response to U.S. tariffs.
This move has heightened interest in Brazil, the world’s second-largest holder of rare earth reserves, with deposits estimated at over twenty-one million tons.
However, extraction in the South American country is hindered by complex regulatory constraints and production costs that are three times higher than those in China, making a rapid shift to alternative sources difficult.
These developments highlight the intersection of fiscal policy, economic stability, and global trade dynamics, with significant implications for investors and key industries.
