US President Donald Trump on Monday warned that China must ensure supplies of rare earth magnets to the United States or face punitive tariffs of up to 200 percent.
“They have to give us magnets,” Trump told reporters at the White House during talks with South Korean President Lee Jae Myung. “Otherwise we have to charge them 200 percent tariff or something.” He acknowledged, however, that such duties would effectively end bilateral trade.
“We have a much more powerful thing—that’s tariffs,” he said. “If we want to put 100 percent, 200 percent tariffs on, we wouldn’t do any business with China. And you know, it would be OK too, if we had to. But the magnet situation, we have tremendous power over them, and they have some power over us.”
Trump added that the United States holds “incredible cards” against China but stopped short of detailing what measures he might take. “If I played those cards, that would destroy China,” he said.
The comments mark a sharp departure from his more conciliatory tone earlier this month, when he extended a 90-day pause on fresh tariff increases against China. While the administration has imposed steep levies on countries such as India and Brazil, it has recently appeared to temper its rhetoric on Beijing. Monday’s remarks suggest that the threat of higher tariffs remains on the table.
The world’s two largest economies have been observing a trade war truce since May, while continuing negotiations on areas ranging from rare earth supplies to China’s access to advanced US AI chips.
On a more positive note, Trump dismissed speculation that Chinese students could be barred from the United States. “We’re going to allow their students to come in. It’s very important—6,00,000 students,” he said, emphasising their contribution to American universities and institutions.
Trump also reiterated plans to visit China, saying he had spoken “fairly recently” with President Xi Jinping. “At some point, probably during this year or shortly thereafter, we’ll go to China,” he said.
