Trump threatens China: China must supply rare earth magnets or face 200% tariffs

According to Reuters, U.S. President Donald Trump stated on August 25 that China must supply the United States with rare earth magnets or face tariffs of 200% or similar rates.

During his meeting with South Korean President Lee Jae-myung at the White House, Trump told reporters: “They must supply us with magnets,” or else “we will impose tariffs of 200% or similar rates on them.” However, he acknowledged that such high tariffs would mean the breakdown of bilateral trade.

“We have a much stronger tool—tariffs. If we impose 100%, 200% tariffs, trade between China and the U.S. will come to a complete halt,” he said. “On the magnet issue, we have tremendous leverage over them, and they also have some leverage over us.”

Trump added: “We are now highly focused on the magnet issue, purely for national security reasons... But we also hold powerful leverage: aircraft parts and Boeing planes.”

Trump noted that due to China's policies on rare earth magnets, the U.S. halted Boeing component supplies to China, leaving 200 Chinese aircraft grounded. “I gave them all the parts so their planes could fly... I could have held them back, but I didn't because I have a good relationship with them.”

This latest statement stands in stark contrast to his previous conciliatory stance toward U.S.-China relations. Earlier this month, Trump had just announced a further 90-day delay in implementing his planned new round of tariff hikes on China.

Rare earth elements serve as strategic foundational materials for modern high-end manufacturing, widely used in critical sectors such as semiconductors, new energy vehicles, and defense industries. China accounts for over 70% of global rare earth ore mining and supplies more than 90% of refined rare earth products. Since Trump's return to office, the U.S. government has persistently leveraged tariffs to pressure China, attempting to reshape bilateral economic relations through economic means. Disputes over U.S. rare earth export policies toward China have become a prominent point of contention in bilateral relations.