Trump threatens 200% tariff on China over magnet export curbs

On Monday, US President Donald Trump warned in the province about the more steep tariffs on China if the export of rare land magnets were cut and threatened a precarious trade ceasefire among the two largest economies in the world.

In his statement to journalists, after a meeting with South Korean President Lee Jae Myung in the White House on Monday, he told reporters, “If they have to give us magnets, if they don’t give us magnets, we should charge 200% tariffs or something else.” He said.

Trump also said that the aircraft parts were an important leverage that Washington had to resist Beijing’s grip on rare lands: “200 planes could not fly because we didn’t know the boeing pieces because they didn’t give us magnets.”

Boeing He works for an agreement to sell up to 500 aircraft to China, and both sides concludes details such as jet models, species and delivery programs, Bloomberg reportedTo underline the role of aircraft jets in a potential US-China trade agreement.

Trump’s statement, according to China’s latest government data, comes at a time when China’s rare earth magnet exports reached the previously seen levels in April. The magnets sent to the USA increased seven times – 660% – increased from the previous month in June, and volumes increased by 76% per month in July.

China controls approximately 90% of global supply and dominates the production of rare soil magnets and provides a similar understanding of the refining of minerals used to do them.

This domination gave an important leverage in trade talks with Beijing Washington, as the US largest US production sector is based on rare earth magnets for automotive, electronic and renewable energy.

Henry Wang, the founder and president of the China and the Globalization Center, a Beijing -based think -tank, despised Trump’s “everyday” statements and said that the real test should have an effort to implement the agreements of both sides.

“He’s always talking about tariffs or potential penalties, but we shouldn’t get caught up in the rhetoric, Wang said Wang, who also served as a consultant for the Chinese State Council.

In June, Washington and Beijing agreed to facilitate China rare land exports, as well as on a trade framework that includes the return of some American technology restrictions for shipments to China.

USA and China, we agreed to drop tariffs each other’s goods are about 55% and 32%respectively. A temporary ceasefire will end in mid -November.

China’s Embassy in the United States did not respond to CNBC’s request for comments.

Li Chenggang, a senior Chinese commercial negotiation, reportedly went to Washington this week for meetings with US Trade Representative Jamieson Greer and senior Treasury officials. Wall Street Journal reported on Tuesday.

Trade firm Greenpoint General Manager Alfredo Montufar-Helu added that Li’s upcoming meetings can prepare the ground for permanent solutions to alleviate higher-level negotiations and tensions.