Donald Trump has threatened 200% tariffs on China if it stops supplying magnets to the U.S.
The warning risks reigniting trade tensions and could push consumer costs significantly higher in coming months.
President Donald Trump has reignited trade tensions with China, threatening to impose 200% tariffs if Beijing fails to continue supplying magnets to the United States.
Speaking on Monday, Trump framed the issue as a national security concern, highlighting China’s dominance in the global magnet and rare earth materials market. His comments come months after a June 2025 agreement, where China pledged to provide rare earth materials in exchange for reduced U.S. tariffs.
The fragile deal now appears to be at risk, with analysts warning that escalating disputes could trigger significant economic fallout. According to estimates, U.S. households could face additional costs of up to $1,300 per year due to higher prices on consumer goods reliant on magnets and rare earths, including electronics, vehicles, and defense technology.
“China has to give us magnets. If they don’t, we charge a 200% tariff or something. Nobody needed magnets until they convinced everybody 20 years ago, let’s all do magnets,” Trump said, in remarks that quickly spread across social media.
Rare earth magnets play a critical role in clean energy technology, military equipment, and advanced manufacturing, making them a sensitive flashpoint in global supply chains.
With Washington and Beijing already locked in disputes over semiconductors, steel, and agricultural products, this latest threat could further strain bilateral relations.
While Trump’s remarks were not accompanied by a formal policy announcement, the possibility of steep tariffs has fueled concerns in both business and diplomatic circles.
