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Trump threatens to impose 200 percent tariffs on China

News Desk
Published: Tuesday, August 26, 2025 10:28 AM
Trump threatens to impose 200 percent tariffs on China

US President Donald Trump has threatened to impose 200 percent tariffs on China. He said the US must provide more magnets or the tariffs will be imposed on China.

President Trump said China must give the United States more magnets or face tariffs of 200 percent or more on their products, speaking to reporters on Monday.

Beijing is very sensitive about rare earth elements. In April, China imposed restrictions on the export of several rare earth minerals and magnets in retaliation for the US's tariff hike. China currently controls about 90 percent of the global magnet market. These elements are essential for many important products, including semiconductor chips, which are used in technology products such as smartphones.

Trump's comments come as the US announced it would take a 10 percent stake in Intel Corporation, one of the world's largest semiconductor chip makers and heavily dependent on rare earth minerals.

Meanwhile, China's export trend has shown the opposite picture. The country's rare earth exports increased significantly in July. According to Chinese customs data, rare earth ore imports increased by more than 4,700 tons in July compared to June.

Trump's remarks come amid an ongoing tariff dispute between the world's two largest economies. While there were signs of a thaw earlier this month, new threats appear to be complicating the situation.

Trump recently extended the deadline for tariffs on Chinese goods by another 90 days in an executive order to allow more time for negotiations between the two sides. Without the order, the tariff rate would have reached 145 percent.

Earlier in May, the United States and China reached an agreement that the tariff rate would be reduced from 125 percent to 10 percent, and the United States would impose a 30 percent tariff.

HN/AlJazeera/MM

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