US President Donald Trump has warned China that if it stops the supply of rare earth magnets, the US will impose a 200% tariff. Trump said that the US has options to harm China, although he does not want to spoil relations and favors maintaining a peaceful trade environment.
Rare Earth Metals: Ahead of a meeting with South Korean President Lee Jae-myung in Washington, US President Donald Trump sent a b message to China. Trump said that if China stops the supply of rare earth magnets, which are essential in the high-tech and defense industries, the US will impose a 200% tariff on them. He clarified that the US is in a b position and has options to harm China, but he does not want to spoil relations. Meanwhile, the US Treasury has appealed to China to play a more responsible role in global trade.
What Trump Said
Trump said that the relationship between the US and China could improve, but if the situation deteriorates, the US has options that could cause heavy losses to China. However, he clarified that his intention is not to spoil relations. He wants a trade balance to be maintained between the two countries and the environment to be peaceful.
Tough Stance on Rare Earths
According to a Money Control report, Trump specifically expressed concern about China's policy regarding rare earth magnets. He said that if China stops the supply of essential magnets, the US will be forced to impose an import duty of up to 200% on them.
Rare earth magnets are used extensively in high-tech industry, electronic devices, and defense-related products. The US is largely dependent on China for this supply. In such a situation, Trump's statement is not just an attempt to create trade pressure, but is also being seen as a strategic message.
Hints of a China Visit
Trump also revealed that he recently had a conversation with Chinese President Xi Jinping. He said that he may visit China soon. Trump claimed that the US and China have many options, but he does not want to take drastic steps. He also said that if these options are used, China will have to bear heavy economic losses.
US Displeasure with China's Policies
US Treasury Secretary Scott Bessent also expressed concern about China's behavior. He said that China is trading oil with countries that are under international sanctions, especially Iran and Russia. Bessent said during an international meeting in Sweden that China should balance its manufacturing and export policy.
He said that if China plays a responsible role, the global trade environment will remain stable. The US wants China to not only focus on increasing its dominance, but also play a cooperative role in the global economy.
US-China Tension
In the second term of the Trump administration, in the month of April, the US imposed tariffs of up to 145% on Chinese goods. However, it was later reduced to 30% on most products. In response, China continued to impose a 10% tariff on American goods and imposed strict restrictions on the export of rare earths in April.
Even after the situation worsened, both countries gave indications of easing tensions in August. The US and China agreed to soften mutual trade disputes for 90 days. Its purpose was to find a solution through dialogue.
Tension May Increase Again
Trump's latest statement makes it clear that if China restricts the supply of rare earth magnets, the situation may worsen again. America's strategy now seems very strict regarding this supply. China is currently the largest exporter of these rare earth resources and a large part of the world depends on it.
