Washington, DC – Aug 25 — U.S. President Donald Trump has threatened to impose 200% tariffs on Chinese magnets, escalating a simmering trade dispute over rare earth elements critical to global tech and defense industries. Speaking at a press conference alongside South Korean President Lee Jae Myung, Trump declared, “China must give us more magnets, or we have to charge them 200 percent tariff or something.”
The remarks follow Beijing’s April decision to restrict exports of rare earth materials, including magnets, which China dominates with 90% of global market share. These components are vital for semiconductors, smartphones, EVs, and military hardware.
The U.S. recently acquired a 10% stake in Intel, heightening its reliance on rare earth imports. July data showed a surge in China’s rare earth exports, with over 4,700 tonnes shipped raising concerns about strategic vulnerabilities.
Despite a 90-day tariff truce signed earlier this month, Trump’s comments signal renewed pressure on Beijing. Without the executive order, tariffs would have jumped to 145%, but the pause allowed negotiations to continue. Analysts warn that the new threat could derail fragile progress and reignite a full-blown trade war.
China has yet to respond officially, though state media hinted at “firm countermeasures” if provoked.
(source economictimes.com)
—Agencies
Leave a Reply