US President Donald Trump has warned on Monday that Washington could impose a 200 percent tariff on Chinese rare earth magnets if Beijing fails to supply them to the United States, reigniting trade war rhetoric between the world’s two largest economies.
Speaking to reporters during a meeting with South Korean President Lee Jae Myung, Trump said, “China has to give us the rare earth magnets, or we have to charge them 200 percent tariff or something. But I don’t think we’re going to have a problem with that.”
His remarks come as China has tightened control over rare earth exports, adding magnets and other key items to its restricted list in April in retaliation against earlier US tariff hikes. Rare earth minerals are critical for producing high-strength magnets used in the automotive, electronics, renewable energy, and defense industries.
The US and China recently extended a 90-day pause on new tariff increases until November 10, but tensions remain high as both countries use rare earths as leverage in negotiations. Analysts say China’s dominance in the rare earth sector gives it a significant bargaining chip in the trade standoff.
Trump suggested he expects to visit China later this year or shortly afterward following recent discussions with Chinese President Xi Jinping. He insisted the two countries would maintain a strong relationship despite ongoing disputes. “They have some cards. We have incredible cards. But I don’t want to play those cards, because that would destroy China,” he said.
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Earlier in June, Trump had claimed a “done deal” with China covering rare earths and Chinese students in the US. He said Beijing had agreed to continue supplying rare earths and magnets, while Washington would allow Chinese students to remain at American universities.
Beijing, however, has expressed growing frustration over US protectionism. China’s ambassador to Washington warned that American farmers should not bear the cost of the trade war, stressing that agricultural cooperation is being undermined by Washington’s tariff strategy.
Trump, who has long linked economic policy to national security under his “Make America Great Again” vision, has frequently highlighted the importance of rare earths to US manufacturing independence. At one point, he floated the idea of acquiring Greenland due to its mineral wealth, though that proposal has since faded.
The former president also claimed last week that Intel had agreed to give the US government a 10 percent equity stake, signaling further interventions in strategic industries. On Monday, he hinted at similar deals with other companies, saying he hoped to see “many more cases like it.”
Analysts say Trump’s hardline stance on rare earths reflects Washington’s growing urgency to reduce reliance on Chinese supply chains and rebuild domestic capacity in critical sectors.
