US President Donald Trump has threatened to slap tariffs of up to 200 percent on Chinese magnets, escalating tensions over rare earth supplies despite a 90-day pause on new levies already in place, multiple media outlets report.
Speaking at the White House alongside South Korean President Lee Jae Myung on Monday, Trump said China must “give the US more magnets or we have to charge them a 200 percent tariff or something.”
The remarks underscore the fragility of ongoing negotiations between the world’s two largest economies. Earlier this month, Trump signed an executive order extending a tariff truce, delaying a sharp rise in duties on Chinese goods to allow more time for talks. Without the extension, tariffs would have jumped to 145 percent.
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Magnets, made from rare earth elements, are a critical component in products ranging from smartphones to semiconductor chips. China controls around 90 percent of the global market and in April tightened export restrictions on several rare earth items in retaliation for US tariff hikes.
The dispute comes as Washington moves to shore up its chip sector, having recently announced a 10 percent government stake in the Californian tech company Intel. Meanwhile, China’s exports of rare earth elements surged in July – with imports of rare earth ore climbing by more than 4,700 tonnes compared to June.
Analysts say Trump’s threat risks reigniting trade hostilities just as signs of easing had emerged, raising uncertainty over global supply chains heavily dependent on Chinese rare earths.
