Trump Warned China: 200% Tariff if Rare Earth Magnets are Not Supplied. In a meeting with the South Korean President, Trump said he has many options to ruin China.
Trump Tariff: US President Donald Trump made a significant statement about China during an important meeting with South Korean President Lee Jae-myung. He stated that he possesses cards he could use to ruin China if he wanted to, but he would not do so. Trump made it clear that if China does not supply the United States with its rare earth magnets, a tariff of up to 200 percent could be imposed.
Strong Message to China in Front of South Korean President
During the meeting, South Korean President Lee Jae-myung sat next to Trump, and several important issues between the two countries were discussed. On this occasion, Trump clarified his strategy against China and said that he has many trump cards. If he uses them, China could suffer heavy losses. However, he also said that the United States wants to maintain good relations with China but is ready to go to any extent to protect its interests.
Tensions Rise Over Rare Earth Magnets
The rare earth magnets that Trump mentioned are extremely important for modern technology and the defense industry. They are used in electric vehicle motors, wind energy turbines, mobile phones, computer chips, and even missile guidance systems. China produces approximately 90 percent of the world's rare earth magnets, which is why the United States depends on its supply. In the past few months, China has tried to put pressure on the United States by restricting their export. This is affecting American industries, and Trump is now adopting a strategy to corner China on this issue.
Tariff Described as the Biggest Weapon
Trump clearly stated that if China does not supply rare earth, the United States has the weapon of tariffs. He warned that by imposing tariffs from 100 percent to 200 percent, trade with China can be virtually eliminated. He said that the United States would not be affected if it had to do so, but the Chinese economy would be seriously affected. He also said that the United States can meet its needs by sourcing supply from other countries, but China will have to bend on this issue.
Background of the Trade War and Current Situation
The trade war between the United States and China is not new. The United States began imposing tariffs on China on issues such as security, technology theft, and drug trafficking. After this, China also increased retaliatory tariffs on American goods. Currently, the United States is collecting an average tariff of 145 percent on most goods coming from China, while China has imposed tariffs of up to 125 percent on American goods. This has not only affected the economies of both countries, but its impact is also visible on the global supply chain.
What Were Trump's Conditions?
Trump set a clear condition before China that if it does not supply rare earth magnets to the United States, tariffs will have to be increased. He also said that the United States has several alternative plans. By sourcing rare earth from other countries, the United States will reduce its dependence, and in the future, there will be so much stock that there will be no question of shortage. Trump acknowledged that this situation arose because previous American presidents did not take a tough stance on this issue. Now he is ready to change it.
