Trump Threatens 200% Tariff on China Over Magnet Supply
U.S. President Donald Trump warned that Washington could impose a 200% tariff on rare-earth magnets imported from China if Beijing fails to resume adequate supply. He made the statement during talks with South Korean President Lee Jae-myung at the White House.
Strategic Importance of Magnets
Rare-earth magnets are vital components in defense equipment, electric vehicles, and advanced electronics. Trump acknowledged that the U.S. holds strong economic leverage over China but said he would prefer not to escalate unless forced to act. He remarked, “If I played those cards, that would destroy China.”
Extension of Trade Truce
Despite the tough message, the U.S. and China agreed to extend their tariff truce by 90 days. This pause delays potential new duties and allows negotiators to continue discussions on critical trade items, including chips, pigments, and rare-earth materials.
