US President Donald Trump has just warned that he will impose stronger tariffs on China if Beijing’s rare earth magnet exports to Washington are restricted, according to CNBC.
Speaking to reporters after meeting with South Korean President Lee Jae Myung at the White House on August 25, President Trump said: “They (China – Editor) have to give us magnets, if they don’t give us magnets, we’ll have to put a 200% tariff or something like that.”
In addition, the White House boss also emphasized that aircraft parts are an important lever that Washington has to deal with Beijing’s control over rare earths. “Their 200 planes are grounded because we didn’t give them Boeing parts on purpose because they didn’t give us magnets,” Trump added.
Boeing is working toward a deal to sell up to 500 planes to China, with both sides finalizing details such as the model, type and delivery schedule, Bloomberg reported. The deal underscores the role of aircraft in a potential trade deal between the US and China.
President Trump’s threat of higher tariffs comes as China’s exports of rare earth magnets have recovered to levels before Beijing imposed export restrictions in April, according to the latest government data.
Specifically, rare earth magnet exports to the US in June increased 660% from the previous month, while exports in July increased 76%.
China dominates the production of rare earth magnets, controlling about 90% of global supply and maintaining similar control over the refining of the minerals used to make them.
That dominance has given Beijing significant leverage in trade negotiations with Washington, as the US relies heavily on rare earth magnets for manufacturing, especially in the auto, electronics and renewable energy sectors.
President Trump’s surprise warning of possible tariff hikes on China shows his eagerness to advance trade cooperation with Beijing and move toward a deal, according to Henry Wang, president of the Center for China and Globalization (CCG), a Beijing-based think tank.
“He always talks a lot about tariffs or possible sanctions, but we shouldn’t get caught up in the rhetoric,” the CCG president added, saying the real test should be the efforts of both sides to implement the agreements.
Washington and Beijing agreed in June 2025 on a trade framework that included Beijing easing controls on rare earth exports and the US lifting some technology restrictions on shipments to China.
The US and China have agreed to cut tariffs on each other’s goods to about 55% and 32%. The temporary truce is set to expire in mid-November.
China’s top trade negotiator Li Chenggang is expected to travel to Washington this week to meet with U.S. Trade Representative Jamieson Greer and senior Treasury officials, according to the Wall Street Journal.
Whether the trade truce holds beyond the November deadline will depend on continued bilateral cooperation, according to Alfredo Montufar-Helu, chief executive of consulting firm GreenPoint.
Li’s upcoming meetings could lay the groundwork for higher-level talks and long-term solutions to ease bilateral tensions, according to GreenPoint’s chief executive.