U.S. Threatens China With 200% Tariffs Over Rare-Earth Magnets

U.S. President Donald Trump has issued a sharp warning to China, declaring that failure to supply the U.S. with rare-earth magnets could trigger tariffs of up to 200%.

The threat marks the latest escalation in an already fragile trade relationship between the two economic superpowers.

“They have to give us magnets. If they don’t, we have to charge them a 200% tariff or something.”

Despite his tough stance, Trump also struck a more conciliatory note, pointing to what he described as improving economic ties between Washington and Beijing.

He revealed plans to visit China later this year, adding

“We’re going to have a great relationship with China.”

Trump Leaves the Tariff Threat Open

Rare-earth magnets—critical components for industries ranging from defense to aviation—have emerged as a major flashpoint in the U.S.–China tariff dispute. Trump accused Beijing of exploiting its near-monopoly on rare earths while acknowledging China’s “intelligent” recognition of their strategic value.

Still, he insisted the U.S. holds greater leverage, saying: “The magnet situation, we have tremendous power over them, and they have some power over us. But we have much bigger and better cards.”

The president highlighted the aerospace industry as a prime example of America’s bargaining power. According to Trump, China was forced to ground 200 jets because it lacked U.S.-made Boeing parts.

He claimed that he eventually authorized the delivery of those parts to “keep planes flying,” framing the move as a goodwill gesture despite the mounting trade tensions.

Even as he suggested that progress was possible, Trump made it clear that harsher measures remain on the table if China fails to comply with U.S. demands. In remarks to Bloomberg, he warned:

“If we want to put 100% or 200% tariffs on, we wouldn’t do any business with China. And it would be OK too, if we had to.”

Timeline of the Negotiations

The latest warning comes against the backdrop of a prolonged U.S.–China trade war defined by sweeping tariffs, retaliatory measures, and fragile truces. Trump’s much-touted “Liberation Day” on April 2 saw tariffs spike to 34% on Chinese imports.

Over the following months, tariffs rose cumulatively to 145% on Chinese goods, while Beijing struck back with 125% duties on American imports.

In May, both countries sought to ease the standoff by agreeing to a 90-day truce after negotiations in Geneva, which reduced tariffs to 30% on Chinese imports and 10% on U.S. imports.

Talks continued in June, when officials met in London and outlined a tentative framework to reduce trade tensions. By August 11, the truce was extended for another 90 days, narrowly averting fresh escalation.

Last week, Trump told CNBC that Washington and Beijing were “getting very close to a deal” and hinted at a possible meeting with Chinese President Xi Jinping before the end of the year if negotiations continue to progress.