China has announced countermeasures against the United States in response to recent trade sanctions imposed by Washington over forced labor and national security concerns.

The measure may mean a significant setback for U.S. president Donald Trump, as China dominates much of the supply chain for batteries, sub-components, and critical raw materials that underpin global and American defense technology, especially in smart munitions and unmanned systems.

China’s Commerce Ministry said the U.S. trade measures “seriously harm China’s legitimate rights and interests. China can only take necessary countermeasures in response, including strengthening export controls on drones and their key components and technology to the U.S.”

Last month, Trump signed an executive order demanding defense contractors to avoid dependence on materials or products from foreign suppliers, in a blow to China.

China’s reaction to the U.S. measures comes as multiple sources have indicated that the U.S. military’s offensive and defensive weapons stockpiles have run low because of the wars in Ukraine and Iran. They include Long-Range Attack and Precision Missiles, as well as Patriot and THAAD Interceptors. The Washington-based Center for Strategic and International Studies estimates it could take until at least 2029 to restore high-end missile inventories to pre-conflict status at current production capacities.

The Chinese countermeasures’ impact hits a strategic vulnerability of the United States and is bound to be felt by other countries too. The U.S. defense is heavily reliant on rare-earth elements, magnets, and specialized battery chemistries necessary for advanced robotics, missiles, and tactical systems.

Similarly, Ukraine, which is heavily reliant on the United States for defense equipment, has recently run low on Patriots, critical to its defense against Russian ballistic missiles. Decoupling from Chinese inputs has proven slow and costly to the United States. It has also triggered severe component shortages, cost inflation, and manufacturing bottlenecks for American defense contractors.

At a time when Trump is claiming to lower the U.S. vulnerability to China’s supplies, he seems to be increasing vulnerabilities on multiple fronts. Domestic security is exposed, U.S. supplies for war efforts in Ukraine and Iran are at risk, and China retains meaningful leverage over sectors central to American military modernization. The question is, in its effort to decouple with a strategic competitor, what cost is the U.S willing to pay?