In response to US tariff hikes, China, which dominates 90% of global rare-earth magnet production, added magnets to its export restriction list in April.
US President Donald Trump stated that China must supply the US with rare-earth magnets or face a potential 200% tariff, amid ongoing trade tensions.
This comes as China added magnets to its export restriction list in April in response to US tariff hikes.
“They have to give us magnets, if they don’t give us magnets, then we have to charge them 200% tariffs or something,” Trump told reporters at the White House on 25 August 2025.
China holds a commanding position in rare-earth magnet production, accounting for approximately 90% of the global supply, along with a similar dominance in refining the minerals essential for their creation. This control has provided Beijing with considerable leverage in trade negotiations with Washington.
Despite these restrictions, China’s rare-earth magnet exports to the US surged significantly in June and July. The US heavily depends on these magnets for industries like automotive, electronics, and renewable energy.
Earlier, Trump signed an executive order on 11 August 2025, extending the tariff truce between the US and China for an additional 90 days, which is set to expire in mid-November. The decision suspends a planned tariff increase, keeping duties at 30% on Chinese imports and 10% on US goods.
