Trump says China has to give US magnets or face 200% tariff
US President Donald Trump on Monday warned that Washington would impose a massive tariff of up to 200% on Chinese-made magnets unless Beijing agrees to supply them directly to the United States. His remarks come at a time of escalating trade friction, with both nations battling over critical technologies and strategic resources.
Magnets made from rare earth elements are vital for defense equipment, electric vehicles, renewable energy systems, and everyday electronics. China currently dominates global production, controlling more than 80% of the world’s supply chain.
In April, Beijing tightened its grip on the sector by adding several types of rare earth materials and magnets to its export restriction list, a move widely seen as retaliation against earlier US tariff hikes. American officials and industry experts fear that China’s restrictions could disrupt key industries, including clean energy and national security.
Trump’s latest threat underscores Washington’s growing urgency to reduce reliance on Chinese rare earths and secure alternative supply sources. The administration is also exploring partnerships with allies like Australia, Canada, and Japan to diversify the supply chain and build domestic processing facilities.
Trade analysts warn that an aggressive tariff could further intensify the ongoing economic standoff, fueling inflationary pressures in the US while prompting China to hit back with fresh countermeasures.
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