Trump Threatens 200% Tariff on Chinese Magnets Amid Rare Earth Supply Tensions

Former President Donald TRUMP has proposed imposing a 200% tariff on Chinese magnets unless exports to the U.S. increase. "We have to charge them 200 percent tariff or something," Trump stated, adding, "I could destroy China, but I won’t do it." The remarks follow China's April decision to restrict exports of rare earth magnets, critical for manufacturing smartphones, chips, electric vehicles, and defense systems.

Beijing's move to add magnet-related materials to its export control list came after Washington escalated tariffs earlier this year. With China controlling 90% of the global magnet supply, the U.S. and its allies face mounting pressure to secure essential tech components. The WHITE House has extended a tariff deadline as mineral stockpiles rise, buying time amid strained negotiations.

The tension escalated further after the U.S. acquired a 10% stake in Intel, a major chipmaker reliant on Chinese rare earths. Supply disruptions could jeopardize U.S. technological advancement. Meanwhile, Chinese rare earth exports surged in July, with shipments increasing by over 4,700 tonnes from June, strengthening Beijing's negotiating position.

Trump recently signed an executive order delaying new tariff hikes on Chinese imports by 90 days. Without this intervention, tariffs on Chinese goods WOULD have skyrocketed to 145%. The ongoing trade standoff underscores the fragility of global supply chains and the strategic importance of rare earth materials.