Trump: We'll allow 600,000 Chinese students into the US

President Donald Trump warned Monday that China must increase its supply of magnets to the United States or face steep trade penalties, saying, “we have to charge them 200 percent tariff or something.”

His remarks come as Beijing grows more protective over rare earth elements, adding several magnets and other items to its export restriction list in April in retaliation for U.S. tariff hikes. China controls about 90% of the global magnet market, a critical input for products ranging from smartphones to semiconductor chips.

The comments also follow Washington’s recent announcement that it would take a 10% stake in Intel, one of the world’s largest chipmakers, which depends heavily on rare earth materials. Customs data shows China’s exports of rare earth minerals surged in July, with shipments of ore climbing by more than 4,700 tonnes from the previous month.

The latest rhetoric underscores the ongoing tariff standoff between the world’s two largest economies, which only recently showed tentative signs of easing. Earlier this month, Trump signed an executive order extending a 90-day window for negotiations, holding off a tariff increase that would have pushed duties on Chinese goods to 145%. In May, the two countries had agreed to a temporary reduction in U.S. tariffs to 30%, later lowered further to 10% from a peak of 125%.