Trump Threatens 200% Tariffs On China If Beijing Does Not Export Rare-Earth Magnets To US
China dominates rare-earth magnet production, which is used in everything from cars and dishwashers to fighter jets, controlling around 90% of the global supply.
US President Donald Trump on Monday threatened 200% tariffs on China if Beijing does not export rare-earth magnets to the US.
"They have to give us magnets, if they don't give us magnets, then we have to charge them 200% tariffs or something," Trump told reporters after a meeting with South Korean President Lee Jae Myung at the White House on Monday.
China dominates rare-earth magnet production, which is used in everything from cars and dishwashers to fighter jets, controlling around 90% of the global supply. The country also maintains a strong grip on refining the minerals used to make these magnets.
"We are going to have a great relationship with China. They have some cards. We have incredible cards, but I don't want to play those cards. If I play those cards, that would destroy China. I am not going to play those cards," said Trump.
Trump met South Korean President Lee Jae Myung at the White House on Monday. "It's an honor to be with President Lee of South Korea... We're going to have some very serious discussions about different things, including trade," he said.
Trump’s statement comes at a time when China’s exports of rare-earth magnets have recovered to levels seen before Beijing imposed export curbs in April, according to the latest government data. Magnets shipped to the US surged more than seven times — 660% — in June from the prior month, with volumes rising 76% on month in July, as per CNBC report.
Rare-earth magnets proved to be Beijing’s most potent weapon in the trade standoff, as the US relies heavily on the rare-earth magnets for its large manufacturing sector, particularly automotive, electronics and renewable energy.
Trump also said that airplane parts were a key leverage that Washington has to counter Beijing’s grip on rare earths. "200 of their planes were unable to fly because we were not giving them Boeing parts purposely because they weren’t giving us magnets," he said.
