US-China Trade War: Trump warns Beijing of 200% tariff, says ‘if he plays those cards...’

US-China Trade War: Amid simmering tensions in the US-China trade deal, American President Donald Trump has warned Beijing of a 200 per cent tariff if it refuses to supply Washington with rare-earth magnets.

“They will have to give us magnets, if they don’t give us magnets, we will have to charge them a 200 per cent tariff… or something,” Trump told reporters in the Oval Office on Monday, ahead of his bilateral meeting with South Korean President Lee Jae Myung.

The president also added a sharp warning while attempting to downplay conflict. “We are going to have a great relationship; however, if I chose to destroy China, I would use those incredible cards at my disposal… If I play those cards, that would destroy China. I am not going to play those cards.”

Rare-earth monopoly at the core of dispute

Trump accused China of monopolising the rare-earth magnet industry, which plays a crucial role in electric vehicle (EV) manufacturing and other advanced technologies.
“Nobody needed magnets until they convinced everybody 20 years ago, ‘let’s all do magnets.’ There were many other ways that the world could have gone. It will probably take us a year to have them… we’re heavily into the world of magnets now,” he said.

China dominates the production of neodymium-iron-boron (NdFeB) magnets, a cornerstone of modern EV traction motors, steering systems, and braking technologies. Experts have long warned that Beijing’s control over rare earths gives it significant leverage in global supply chains.

Tariffs, truces, and stalemates

Earlier this year, Washington imposed 145 per cent tariffs on Chinese goods, prompting Beijing to retaliate with a 125 per cent duty on US exports. Both sides later scaled back, with the US tariff standing at 30 per cent and China’s at 10 per cent today.

The latest remarks come just weeks after Trump signed an order extending a 90-day tariff truce, allowing negotiators more time to seek common ground. Treasury Secretary Scott Bessent has described Beijing’s oil trade with sanctioned nations such as Iran and Russia as another “central dispute,” warning that such revenues finance destabilising activities.

Trump confirmed he had spoken with President Xi Jinping recently and suggested he might travel to Beijing later this year. “At some point, probably during this year or shortly thereafter, we’ll go to China,” he said, noting that Xi had extended an invitation.

Trump presses ahead with 50% tariffs on India 

The United States has formally notified the implementation of 50 per cent tariffs on Indian exports, effective August 27, 2025. The move comes after Trump determined that the Russian Federation’s actions continue to pose an “unusual and extraordinary threat” to US national security and foreign policy-- and accused India of directly or indirectly importing Russian oil.

“This new duty will be effective for products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025,” the order stated.

The US directive excludes certain categories that are already subject to high tariffs. Passenger vehicles, iron and steel, and copper items--all currently facing 50 per cent duties -- have been kept out of the latest order. Similarly, pharmaceuticals and electronic goods have also been exempted from the new levy.