US President Donald Trump recognized China’s stronghold on rare earth magnets, commending its strategic move to establish a global monopoly, while also cautioning that Washington could impose tariffs of up to 200% if the supply to the United States were disrupted.
Trump, while addressing the media from the Oval Office, emphasized the significance of rare earth magnets, describing them as vital for industries including automotive, electronics, and defense. He stated that if China failed to supply these magnets to the United States, Washington would be compelled to impose a 200% tariff, highlighting the leverage the US holds over Beijing.
Trump stated that despite maintaining what he described as strong relations with China, the United States held stronger bargaining power. He added that Washington had much bigger and better cards than Beijing, and said that using them could severely damage China, though he clarified that he would not resort to such measures.
China, which controls nearly the entire global supply of rare earth magnets, had earlier restricted exports of seven key minerals in April in response to sweeping US tariffs. However, two months later, both countries reached a trade agreement ensuring that China would continue supplying rare earth materials and magnets to the US. Trump clarified that his latest comments were not in response to any immediate Chinese threat to cut supply.
Highlighting US influence in other sectors, Trump referred to the aviation industry, noting that nearly 200 Chinese aircraft had been grounded earlier when the United States withheld essential Boeing parts. He said that the parts were eventually supplied, allowing the planes to resume operations, and emphasized that this decision was made to preserve the bilateral relationship.
His remarks come shortly after US Treasury Secretary Scott Bessent defended Washington’s decision not to penalize China over purchases of Russian oil, a stance Trump used to justify his earlier move of slapping 50% tariffs on Indian imports.
Currently, the US imposes 30% tariffs on Chinese goods, which include a 10% base duty and an additional 20% linked to fentanyl-related measures. Trump’s fresh warning indicates Washington’s intent to maintain pressure on Beijing while keeping open channels for trade cooperation.