US President Donald Trump during a gathering with Lee Jae Myung, South Korea's president, not pictured, successful the Oval Office of the White House successful Washington, DC, US, connected Monday, Aug. 25, 2025.
Al Drago | Bloomberg | Getty Images
U.S. President Donald Trump connected Monday stateside warned of steeper tariffs connected China if exports of rare-earth magnets were curbed, threatening a precarious commercialized truce betwixt the world's 2 largest economies.
"They person to springiness america magnets, if they don't springiness america magnets, past we person to complaint them 200% tariffs oregon something," Trump told reporters aft a gathering with South Korean President Lee Jae Myung astatine the White House connected Monday.
Trump besides said that airplane parts were a cardinal leverage that Washington has to antagonistic Beijing's grip connected uncommon earths: "200 of their planes were incapable to alert due to the fact that we were not giving them Boeing parts purposely due to the fact that they weren't giving america magnets."
Boeing has been moving toward a woody to merchantability arsenic galore arsenic 500 craft to China, with some sides finalizing the details specified arsenic pitchy models, types and transportation schedules, Bloomberg reported, underscoring the relation of airplane jets successful a imaginable U.S.-China commercialized deal.
Trump's connection comes astatine a clip erstwhile China's exports of rare-earth magnets person recovered to levels seen earlier Beijing imposed export curbs successful April, according to the latest authorities data. Magnets shipped to the U.S. surged much than 7 times — 660% — successful June from the anterior month, with volumes rising 76% connected period successful July.
China dominates rare-earth magnet production, controlling astir 90% of planetary supply, and maintains a akin grip implicit the refining of the minerals utilized to marque them.
That dominance has fixed Beijing important leverage successful its commercialized talks with the Washington, arsenic the U.S. relies heavy connected the rare-earth magnets for its ample manufacturing sector, peculiarly automotive, electronics and renewable energy.
Henry Wang, laminitis and president of the Center for China & Globalization, a Beijing-based deliberation tank, downplayed Trump's "casual" remarks, saying the existent trial should beryllium some sides' efforts successful implementing their agreements.
"He's bluffing. He ever talks large connected tariffs oregon imaginable punishment, but we shouldn't get caught up successful the rhetoric," said Wang, who besides serves arsenic a counsellor for China's authorities council.
In June, Washington and Beijing agreed connected a commercialized model that included easing controls connected Chinese rare-earth exports arsenic good arsenic a rollback of immoderate American tech restrictions for shipments to China.
U.S. and China person agreed to lowering tariffs connected each other's goods to astir 55% and 32%, respectively. That a impermanent truce is acceptable to expire successful mid-November.
China's embassy successful the U.S. did not respond to CNBC's petition for comments.
Senior Chinese commercialized negotiator Li Chenggang is reportedly heading to Washington this week for meetings with U.S. Trade Representative Jamieson Greer and elder Treasury officials, the Wall Street Journal reported Tuesday.
Whether the commercialized truce holds beyond its November deadline volition hinge connected continued bilateral engagement, said Alfredo Montufar-Helu, managing manager astatine advisory steadfast GreenPoint, adding that Li's upcoming meetings could laic the groundwork for higher-level negotiations and enduring solutions to easiness the tensions.
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