On the 25th, U.S. President Trump warned that during the suspension of additional tariffs between the U.S. and China, China must supply magnets to the United States, otherwise a 200% tariff will be imposed on China.
While meeting with South Korean President Lee Jae-myung at the White House, Trump stated that China has already monopolized the global magnet market. Washington believes that the supply of magnets is vital to U.S. national security, especially in the aviation sector, and that a 200% tariff would in effect mean the U.S. will do no business whatsoever with China.
In early April this year, in retaliation for the U.S. tariff policy, China included a variety of rare earth products on its export restriction list. Statistics show that China's exports of rare earths and magnets to the U.S. dropped by 80% in May.
Trump said that China has some cards to play, but so does the United States, and they are incredible ones. However, the U.S. does not want to play those cards; if it does, it will destroy China. Even so, Trump also indicated that U.S.-China economic relations have improved, mentioning that he recently spoke with China's leader by phone and expects he may visit China this year or shortly thereafter, expressing optimism that China and the U.S. will build a good relationship. He even suggested that Lee Jae-myung might go with him on the visit to China, saying that sharing one plane could save energy. Trump also stated that the U.S. will continue to allow Chinese students to study in the country.