U.S. President Donald Trump has ramped up pressure on China in the intensifying trade conflict, signaling potential tariffs of up to 200% on Chinese imports if Beijing does not provide the U.S. with the sought-after magnets.
His remarks, delivered to reporters at the White House during a meeting with South Korean President Lee Jae Myung, come as both economies remain locked in high-stakes negotiations, with Trump emphasizing the U.S.’s advantageous position in the dispute.
“They have some cards. We have incredible cards,” said the U.S. President.
In recent months, Beijing has heightened export controls on rare earths and related products, including strategic magnets, following American tariff increases. This move has reinforced China’s power in the global supply chain, as it controls around 90% of the world market for these magnets, which are indispensable to advanced technologies ranging from smartphones to semiconductor devices.
Despite Beijing’s tighter grip, China’s rare earth exports picked up in July, according to customs data, with ore shipments rising by over 4,700 tonnes from the previous month. The spike highlights the volatility of trade flows amid shifting policy landscapes.
The rhetoric from the White House arrives just weeks after indications of waning tensions, with Trump extending a 90-day reprieve on further tariffs for Chinese goods, offering both sides additional room for talks.
