Washington, August 26: US President Donald Trump on Monday warned that Washington could impose tariffs as high as 200% on China if Beijing withheld supplies of rare earth magnets — critical components for the automotive, electronics, and defense industries.
Speaking to reporters at the Oval Office, Trump acknowledged China’s dominance in the sector, calling it “intelligent” for securing a near-monopoly on global magnet production. However, he cautioned that if China restricted exports to the US, it could face severe economic repercussions.
“They have to give us magnets. If they don’t, then we have to charge them 200 percent tariff or something,” Trump said.
US-China Trade Tensions Resurface
The remarks come amid renewed focus on the delicate trade relationship between the two powers. While praising ties with Beijing, Trump asserted that the US held greater leverage.
“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,” he added.
In April, Beijing had restricted exports of seven rare earths in response to sweeping US tariffs, highlighting the vulnerability of global supply chains. By June, a trade deal was announced under which China agreed to resume supplying rare earth minerals and magnets to Washington.
Although Trump floated the threat of 200% tariffs, he did not suggest that China was currently planning to cut off supplies. Instead, his comments underscored the strategic importance of rare earths, as well as US leverage in other sectors.
US Leverage Through Aviation
Trump pointed to American dominance in aviation as an example, noting that over 200 Chinese aircraft had been grounded when the US withheld Boeing parts.
“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,” he said.
The President’s latest remarks come just days after Treasury Secretary Scott Bessent defended Washington’s decision not to penalize Beijing for purchasing Russian oil — a position that Trump contrasted with his recent move to threaten 50% tariffs on Indian imports.
Currently, the US levies around 30% duties on Chinese imports, including a 10% base tariff and an additional 20% related to fentanyl-linked trade measures.
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