Trump threatens 200 pc tariff if China withholds rare earth magnets

US President Donald Trump on Monday (August 25) warned Beijing that it must continue supplying rare earth magnets to the United States or face tariffs of up to 200 per cent, even as he hinted at a possible visit to China later this year.

The announcement came during Trump’s meeting with South Korean President Lee Jae Myung in Washington, where he spoke to reporters about US-China ties and his recent conversations with Chinese President Xi Jinping.

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200 pc tariff threat to China

According to a Reuters report, Trump told reporters that China has to give the United States magnets or "we have to charge them 200% tariff or something" amid a trade dispute between the two nations.

China, which tightened export restrictions on rare earths and magnets in April in response to US tariff hikes, has been highly sensitive about its dominant role in the sector.

"If they don’t give us magnets, then we have to charge them (a) 200 per cent tariff or something. But we’re not going to have a problem, I don’t think, with that," Trump added.

Rare earth elements are vital for manufacturing magnets used across industries ranging from automotive to defence.

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Possible China visit

Speaking from the Oval Office before his bilateral meeting with Lee, Trump claimed Washington held a stronger hand in the trade conflict.

“They have some cards. We have incredible cards. But I don’t want to play those cards. If I did, that would destroy China,” he remarked, without specifying whether he meant economic, political, or strategic leverage, according to Fox News.

The US president also confirmed he had spoken with Xi recently and was considering a trip to Beijing. “At some point, probably during this year or shortly thereafter, we’ll go to China,” Trump said, noting that Xi had extended an invitation.

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Trade truce for 90 days

His comments come against the backdrop of Washington and Beijing agreeing on August 12 to extend their trade truce by 90 days to allow more time for negotiations.

Tariff battles have escalated over the past year, with both sides slapped punitive tariffs on each other’s goods, disrupting global supply chains.

While duties had peaked at 145 per cent in April, both sides have since eased measures, with Washington cutting tariffs on most Chinese imports to 30 per cent and Beijing responding with a 10 per cent levy on US goods.