China’s foreign ministry on Trump’s 200% tariff threat on rare-earth magnets: China has repeatedly stated its position

China’s foreign ministry on Trump’s 200% tariff threat on rare-earth magnets: China has repeatedly stated its position

China's foreign ministry has responded to U.S. President Donald Trump's threat of a 200% tariff on Chinese-made rare earth magnets, reiterating its stance on the ongoing trade dispute. The ministry emphasized that China will not be coerced into increasing exports of rare earth materials, which are critical for various industries, including technology and defense.

Trump's threat comes amid escalating U.S.-China trade tensions. In a recent statement, the U.S. president warned that China must increase its exports of rare earth magnets or face the 200% tariff. This move is part of the broader trade war between the two nations, with Trump leveraging his administration's control over key trade policies [1].

China currently controls approximately 90% of the global magnet supply, a position that gives it significant influence in global trade dynamics. In response to earlier U.S. tariff hikes, Beijing added several magnet-related materials to its export control list, putting the U.S. and its allies in a precarious position [2].

The U.S. has taken a 10% stake in Intel, one of the world's largest semiconductor chipmakers, which relies on Chinese rare earths for its products. Any supply disruptions could threaten U.S. technological development [3].

The Chinese foreign ministry's response underscores the complexity of the trade dispute. While Trump's threat of a 200% tariff aims to pressure China into increasing exports, China's foreign ministry maintains that it will not be coerced into changing its export policies [4].

The ongoing tariff standoff has created uncertainty in global markets, with analysts forecasting potential impacts on supply chains and export volumes [5]. Trump's rhetoric reflects a transactional approach to trade, where specific concessions are sought in exchange for trade policy adjustments. Despite the threat, no immediate action has been announced, but the statements are expected to intensify pressure on Chinese officials to revise their export policies [6].

In a further move, Trump signed an executive order ending the de minimis exemption, which previously allowed shipments under $800 to bypass tariffs. This change means that small packages, especially those from Chinese e-commerce platforms, will now be subject to full tariffs [7].

The situation highlights the delicate balance between trade negotiations and national security interests. As the two nations continue to navigate the complex landscape of global trade, the implications for both economies and global markets remain uncertain.

References:
[1] https://www.aljazeera.com/economy/2025/8/25/trump-threatens-new-china-tariffs-over-magnets
[2] https://www.ainvest.com/news/trump-threatens-200-tariff-chinese-rare-earth-magnets-export-restrictions-2508/
[3] https://www.ainvest.com/news/trump-threatens-200-tariff-chinese-rare-earth-magnets-export-restrictions-2508/
[4] https://www.ainvest.com/news/trump-threatens-200-tariff-chinese-rare-earth-magnets-export-restrictions-2508/
[5] https://www.ainvest.com/news/trump-threatens-200-tariff-chinese-rare-earth-magnets-export-restrictions-2508/
[6] https://www.ainvest.com/news/trump-threatens-200-tariff-chinese-rare-earth-magnets-export-restrictions-2508/
[7] https://www.ainvest.com/news/trump-threatens-200-tariff-chinese-rare-earth-magnets-export-restrictions-2508/