U.S. President Donald Trump on Monday warned of imposing a 200% tariff on China if Beijing curbs exports of rare-earth magnets, a critical material for U.S. industries ranging from automotive and electronics to renewable energy.
Speaking after his meeting with South Korean President Lee Jae Myung at the White House, Trump highlighted the U.S.’s leverage in trade, specifically citing restrictions on Boeing airplane parts as a countermeasure against China’s dominance in rare earths.
China, which controls about 90% of the global rare-earth magnet supply, had previously curbed exports in April 2025. However, shipments rebounded strongly in June and July, with June exports to the U.S. surging 660% month-on-month.
Analysts suggest Trump’s comments may be more rhetorical than actionable, as Beijing and Washington recently reached a trade framework in June that included easing rare-earth export restrictions and partial rollback of U.S. tech curbs. Both sides also agreed to gradually lower tariffs (to 55% on U.S. goods and 32% on Chinese goods), but the temporary trade truce expires in November 2025.
Chinese negotiator Li Chenggang is set to travel to Washington for talks with U.S. Trade Representative Jamieson Greer and Treasury officials. Experts believe these meetings could determine whether the fragile U.S.-China trade truce extends beyond November or collapses into renewed tariff escalations.
For traders and investors following these developments, platforms like forexpediaa provide timely updates, forex trading strategies, and insights into how commodity trading and tariffs impact global markets. Risk management remains key, and tools such as a forex position size calculator can help optimize trades during heightened volatility. Professional trading services also guide traders in navigating uncertainty created by geopolitical shifts and tariff threats.
