Former US President Donald Trump praised China for its smart control of the magnet industry. But at the same time, he issued a serious warning. Trump said that if America does not receive rare earth magnets, the US will impose 200% tariffs on China.
China’s Control Over Rare Earth Magnets
Rare earth magnets are vital for cars, electronics, and defense systems. They are used in smartphones, electric vehicles, and fighter jets. Today, China controls most of the world’s supply.
In April, Beijing restricted exports of seven rare earth minerals. This was in response to US tariffs. The move showed how much power China holds in this market.
Trump’s 200% Tariff Threat
During a press interaction at the White House, Trump praised China. He said Beijing had “intelligently” created a monopoly. Yet, he warned that the US would act if supplies were blocked.
“They have to give us magnets. If they don’t, we have to charge them 200 percent tariffs,” Trump said.
Trump also claimed that the US has more leverage. “We have much bigger and better cards than they do,” he added.
Trade Deals and Pressure
In June, Trump announced a trade deal with China. As part of the deal, Beijing agreed to supply rare earth minerals and magnets. Still, tensions remain.
Trump highlighted another example of leverage. At one point, 200 Chinese jets were grounded because the US withheld airplane parts. Later, the parts were released so the planes could fly.
Why Magnets Are Important
Rare earth magnets are crucial for global industries. They power electric cars, renewable energy systems, and modern weapons. Because of this, they are now seen as a strategic asset.
Trump’s latest warning shows how serious the US is about securing these resources. The rivalry between Washington and Beijing is likely to grow in the coming years.
