Faith Nyasuguta
In a sharp escalation of the U.S- China trade tensions, President Donald Trump warned on Monday that Washington may impose massive 200% tariffs on China if Beijing halts the supply of rare-earth magnets to the United States. The warning highlights just how critical these resources are and how fragile America’s reliance on Chinese exports has become.
Speaking at the White House after a meeting with South Korea’s president, Trump bluntly stated: “They have to give us magnets. If they don’t give us magnets, then we have to charge them 200% tariff or something.” The remark was aimed at China’s near-monopoly on rare-earth magnets, which are vital for manufacturing electric vehicles, drones, semiconductors, smartphones, and even advanced military equipment.
The threat comes despite a 90-day pause on tariff hikes that Washington and Beijing agreed to earlier this month, designed to allow breathing space for negotiations. That truce is set to expire in mid-November, giving both sides a short window to avoid another round of painful economic blows. Trump’s statement suggests the White House is willing to break from the spirit of the truce if China continues to squeeze rare-earth exports.
China currently controls around 90% of the global processing of rare-earth minerals, giving it enormous leverage over industries worldwide. Earlier this year, Beijing tightened export restrictions on some of these key materials, in what many analysts viewed as retaliation against U.S. tariffs on Chinese goods. The move sent shockwaves through global supply chains, exposing how dependent the West has become on Chinese dominance in this field.
If enforced, Trump’s proposed 200% tariff would severely disrupt U.S. imports, raising costs for industries from clean energy to consumer electronics. Critics argue that such a move would not only hurt China but also cripple American manufacturers, who have limited alternative sources for rare-earth magnets. Still, Trump defended his hardline stance, saying: “We have incredible cards, but I don’t want to play those cards. If I played those cards, that would destroy China.”
The stakes could not be higher. For the U.S., the rare-earth struggle is not just an economic dispute but also a national security issue. Rare-earth magnets are indispensable in defense systems, from fighter jets to precision-guided missiles. A breakdown in supply could hamper the Pentagon’s readiness and slow down production in critical sectors.
For China, restricting rare-earth exports is one of its strongest bargaining chips in the trade war. By tightening supply, Beijing can send a powerful message without directly targeting American agricultural or industrial goods. However, such measures also risk pushing the U.S. to accelerate its efforts to develop alternative suppliers, such as domestic mining projects in Nevada and Australia’s growing rare-earth industry.
Despite the fiery rhetoric, analysts believe there is still room for negotiation. Both countries are preparing for further trade talks in Washington, and while threats dominate headlines, neither side may be willing to push the standoff into a full-scale economic crisis.
The dispute over rare-earths showcases a larger problem for the U.S – decades of dependence on China for critical raw materials. While Trump’s 200% tariff threat is meant to project strength, it also reveals how vulnerable Washington is to supply chain disruptions. As trade talks continue, the rare-earth magnet standoff has become a symbol of the broader power struggle between the world’s two largest economies.
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