Trump warns US could 'destroy China' over magnets with 200% tariff

Former U.S. President Donald Trump warned that the U.S. might impose steep tariffs—up to 200%—on China if Beijing restricts exports of rare-earth magnets, a critical component in various industries. Trump highlighted China’s near-monopoly on these magnets, which supply about 90% of the global market, and suggested that the U.S. holds stronger leverage through aerospace exports, citing Boeing’s aircraft sales to China as a key bargaining chip. He emphasized that tariffs would be a more powerful tool than magnets themselves and hinted at the potential to escalate trade pressure, though he claimed he would refrain from using the most severe measures. The comments came amid a fragile trade truce between the U.S. and China, agreed upon in June, which eased some export restrictions and reduced tariffs on both sides. Despite a recent rebound in China’s rare-earth magnet shipments to the U.S., supply chain vulnerabilities persist, as seen in production halts at companies like Ford and Tesla due to magnet shortages.