Donald Trump on Monday warned that the U.S. could slap a 200% tariff on Chinese magnets if Beijing doesn’t increase shipments to American industries. Speaking to reporters, Trump said , “We have to charge them 200 percent tariff or something,” adding, “I could destroy China, but I won’t do it.” This is coming after China’s April decision to restrict exports of rare earth magnets, which are needed to manufacture products like smartphones, chips, electric vehicles, and even defense systems (very important for America). Beijing added several magnet-related materials to its export control list after Washington increased tariffs earlier this year. China currently controls 90% of the global magnet supply, putting the U.S. and its allies in a tight spot as they race to secure critical tech components. White House extends tariff deadline as minerals stockpile rises The situation intensified after the U.S. took a 10% stake in Intel, one of the biggest chipmakers in the world. Intel relies on China’s rare earths for chip production, making supply disruptions a threat to U.S. technology development. Around the same time, Chinese rare earth exports jumped in July. Government data showed rare earth ore shipments grew by over 4,700 tonnes from June, giving Beijing more weight to throw around in negotiations. Trump signed an executive order this month extending a 90-day delay on new tariff hikes against Chinese imports. If the order hadn’t been signed, tariffs on Chinese goods would have surged to 145%. Earlier this year, Washington and Beijing had agreed to drop tariffs temporarily—U.S. tariffs from 145% to 30%, and Chinese tariffs from 125% to 10%. That truce, however, is set to expire on November 9. Between January and April 2025, the average U.S. tariff rate rose from 2.5% to 27%, reaching its highest level in more than 100 years. By August 2025, it was adjusted to 18.6% after policy tweaks. Still, the rate remains far above historical norms. As of July, tariffs made up 5% of total U.S. federal revenue, more than doubling the usual share. Trump invokes IEEPA, enacts new universal tariff and eliminates exemptions Using Section 232 of the 1962 Trade Expansion Act, Trump also pushed through major increases in steel, aluminum, and copper tariffs, all raised to 50%. He placed a 25% duty on imported cars from most countries and signaled upcoming tariffs on pharmaceuticals, semiconductors, and more. On April 2, he took things even further, invoking the International Emergency Economic Powers Act (IEEPA) to authorize a universal 10% tariff on all imports from countries without separate deals. That policy kicked in on April 5. Country-specific tariffs were paused after the 2025 stock market crash, but the White House reactivated them on August 7. This reignited tensions with Canada and Mexico, while pouring more fuel on the U.S.–China dispute. At its peak, the U.S. slapped 145% baseline tariffs on Chinese imports. China responded with 125% tariffs on U.S. goods. The temporary agreement to ease duties is now close to collapse. Trump also signed an executive order that will take effect on August 29, 2025, ending the de minimis exemption that had allowed shipments under $800 to bypass tariffs. With the exemption gone, small packages, especially those from Chinese e-commerce platforms, will now face full tariffs like everything else. Join Bybit now and claim a $50 bonus in minutes
