Trump threatens 200% tariff on China

US President Donald Trump has issued a stern warning to China, threatening to impose tariffs of up to 200% on Chinese goods if Beijing does not increase its supply of rare earth magnets to the United States.

Speaking to reporters on Monday, Trump stated, “China must supply more magnets to the US, or face tariffs of 200% or even higher.” The comments come amid growing concerns over the global supply chain for rare earth materials, which are critical components in semiconductors, smartphones, and other advanced technologies.

According to a report by Al Jazeera, the warning follows mounting tensions over trade and technological dependencies between the world’s two largest economies.

Beijing is particularly sensitive about its export of rare earth minerals. In April, China imposed restrictions on the export of several rare earth materials, including magnets, in response to earlier U.S. tariff hikes. Currently, China controls roughly 90% of the global magnet market.

These rare earth elements are essential for the production of semiconductor chips, used in everything from consumer electronics to military hardware.

Trump's remarks come shortly after the announcement of a 10% stake acquisition in Intel Corporation, a major U.S.-based chip manufacturer. Intel is heavily reliant on rare earth materials, further highlighting the strategic importance of securing stable supply chains.

Despite Beijing’s restrictions, Chinese export data indicates a surprising surge in rare earth shipments. In July alone, China’s exports of rare earth ores rose by over 4,700 tons compared to June, according to Chinese customs figures.

This latest threat from the White House revives concerns of renewed trade hostilities. Earlier this month, there had been signs of easing tensions between Washington and Beijing. However, Trump’s comments suggest a more aggressive stance may be returning.

In an effort to allow more time for negotiations, President Trump recently signed an executive order extending the deadline for tariff implementation on Chinese goods by 90 days. Without the extension, tariffs could have climbed to 145%.

Previously, in May, both nations had agreed to reduce tariffs — bringing the rate down from 125% to 10%, with the U.S. maintaining a 30% rate on select goods.

As the economic standoff continues, global markets remain watchful of further developments between the two trade giants.