Donald Trump lauded China’s dominance in rare earth magnets but warned that the U.S. could impose 200% tariffs if supply to America is restricted.
US President Donald Trump hinted at slamming China with 200% tariffs if Beijing halted the supply of rare earth magnets to America. Magnets are important for the automotive electronics and defense sectors.
While Trump praised China for cleverly building a monopoly on magnets, he also warned of the consequences if the country stopped their supply to America. "They have to give us magnets. If they don't give us magnets, then we have to charge them (a) 200 per cent tariff or something," Trump stated at the White House during a press briefing.
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He added that the United States has more economic power than Beijing and said, “We have much bigger and better cards than they do... If I played those cards, that would destroy China. I’m not going to play those cards.”
China restricted the export of seven rare earths to the US earlier this year in retaliation for tariffs. In June, Trump announced a deal which allows Washington to receive a supply of these minerals; however, he didn't give any indication that Beijing was planning to withhold the magnets.
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Trump asserted that America is a hub for integral aircraft components and Boeing jets and recalled how 200 Chinese jets were grounded until the US supplied them with important parts. He said, “I sent them all of the parts so their planes can fly... I could have held them back. I didn’t do that because of the relationship I have. And they’re flying."
Trump's comments come after US Treasury Secretary Scott Bessent decided not to penalize China for purchasing Russian crude oil. The United States currently imposes 30% duties on Chinese imports: 10% base tariffs plus 20% fentanyl-related levies.
