FX.co ★ Trump Floats 200% Tariff on China Over Magnet Supply

President Donald Trump announced Monday the potential imposition of a 200% tariff on Chinese goods if China opts not to supply magnets to the United States, a move prompted by China's recent restrictions on rare earth mining. In a meeting with South Korean President Lee Jae Myung in the Oval Office, Trump emphasized, “They have to give us magnets.” He further explained, “If they don’t supply us with magnets, we may consider imposing a 200% tariff or another measure… However, I anticipate this won't become an issue.” This statement followed an announcement from China’s Ministry of Industry and Information Technology, which introduced stricter quotas and tracking requirements for rare earth producers. China currently processes approximately 99% of the global heavy rare earth minerals essential for magnet production. Trump highlighted that establishing a domestic supply chain could take the U.S. "probably about a year," illuminating the strategic concerns regarding resource dependency.