Trump Threatens 200% Tariff on Chinese Rare Earth Magnets Over Export Restrictions

Donald Trump warned on August 21, 2025, that the U.S. could impose a 200% tariff on Chinese-made rare earth magnets unless Beijing increases their exports to American industries. Speaking to reporters, Trump emphasized that the U.S. holds strong leverage in trade negotiations, stating, “We have to charge them 200 percent tariff or something,” while also noting, “I could destroy China, but I won’t do it” [1]. The warning comes amid heightened U.S.-China trade tensions and follows China’s April decision to restrict exports of rare earth materials, which are essential for manufacturing chips, electric vehicles, and defense systems [2].

China currently controls 90% of the global magnet supply, a critical 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. This move put the U.S. and its allies in a precarious position as they seek to secure supply chains for critical technology components [3]. The situation has intensified further with the U.S. taking a 10% stake in Intel, which relies on Chinese rare earths for chip production. Any supply disruptions could threaten U.S. technological development [4].

According to government data, Chinese rare earth ore exports rose by over 4,700 tonnes in July, giving Beijing more leverage in ongoing negotiations [5]. At the same time, Trump signed an executive order extending a 90-day delay on new tariff hikes against Chinese imports, which would have otherwise risen to 145%. Earlier this year, the U.S. and China had agreed to a temporary truce, lowering U.S. tariffs from 145% to 30% and Chinese tariffs from 125% to 10%, but that agreement is set to expire on November 9 [6].

Trump has also implemented broader tariff increases under Section 232 of the 1962 Trade Expansion Act, raising tariffs on steel, aluminum, and copper to 50%. He placed a 25% duty on imported cars and signaled additional tariffs on pharmaceuticals and semiconductors. On April 2, he invoked the International Emergency Economic Powers Act (IEEPA) to enact a universal 10% tariff on all imports from countries without specific trade agreements [7].

The administration’s unpredictable approach to tariffs has created uncertainty in global markets, with analysts forecasting potential impacts on supply chains and export volumes [8]. Trump’s rhetoric reflects a transactional approach to trade, where specific concessions are sought in exchange for trade policy adjustments. While no immediate action has been announced, his statements are expected to intensify pressure on Chinese officials to revise their export policies [9].

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 [10].

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[1] title: U.S-China trade war: Donald Trump sends stern message ... (https://m.economictimes.com/news/international/us/u-s-china-trade-war-donald-trump-sends-stern-message-to-beijing-give-magnets-or-face-200-tariff/articleshow/123510396.cms)

[2] title: Trump threatens 200% China tariff over part that shut down ... (https://www.dailymail.co.uk/yourmoney/cars/article-15032863/Trump-threatens-200-tariff-China-magnets-shut-US-car-plants.html)

[3] title: Trump Says China Convinced the World 'Let's All Do ... (https://gizmodo.com/trump-says-china-convinced-the-world-lets-all-do-magnets-2000647747)

[4] title: The president threatened tariffs on China if they didn't export ... (https://uk.news.yahoo.com/president-threatened-tariffs-china-didn-204458015.html)

[5] title: Trump says he holds 'incredible cards' that could 'destroy ... (https://www.aol.com/trump-says-holds-incredible-cards-190339579.html)

[6] title: Tariff Ticker: Trump Threatens 200% Duties on China and ... (https://finance.yahoo.com/news/tariff-ticker-trump-threatens-200-205249926.html)

[7] title: Trump threatenes a 200% tariff on Chinese magnets if ... (https://www.mitrade.com/insights/news/live-news/article-3-1067964-20250826)

[8] title: Trump threatens to impose a 200% tariff if China doesn't ... (https://www.reddit.com/r/brasil/comments/1n05v5g/trump_amea%C3%A7a_impor_tarifa_de_200_se_china_n%C3%A3o/?tl=en)

[9] title: Trump says China has to give US magnets or face 200% tariff (https://www.reddit.com/r/worldnews/comments/1n03u6r/trump_says_china_has_to_give_us_magnets_or_face/)