Trump threatens China with 200% tariffs if it doesn't export rare earth magnets

President Donald Trump threatened China on Monday with the imposition of tariffs of around 200% on Chinese products entering the United States if Beijing does not accelerate its exports of rare earth magnets.

"They have to give us magnets," Trump said. "If they don't, then we'll have to impose a 200% tariff or something like that. But I don't think we'll have a problem with that," the American tycoon added in the presence of his South Korean counterpart, Lee Jae-myung, during a White House press conference .

China is the world's leading producer of rare earths , which are used to make magnets essential for the automotive, electronics and defense industries.

However, in early April, Beijing imposed export licenses for these strategic materials, a decision perceived as a retaliatory measure in the face of US tariffs.

Beijing and Washington then embarked on a full-blown trade war, each responding to the other's tariff increases, reaching triple-digit levels on both sides.

Since then, negotiations between the two largest world powers have allowed tensions to be reduced, and the Chinese government has committed to speeding up the granting of licenses to a number of US companies.

"I think we have a wonderful relationship with China, I spoke recently with President Xi [Jinping] and sometime this year we should visit China," Trump said.

The American added: "They have some cards. We have incredible cards, but I don't want to play them. If I did, I would destroy China."

American and Chinese representatives have met on three occasions in recent months to resolve a series of issues relating to their trade relations.

After these meetings, the two countries reached an agreement, temporarily reducing tariffs to 30% for the United States and 10% for China. The agreement was valid for a period of 90 days, but has now been extended for the second time until next November.

Washington, for its part, has already expressed some discontent, accusing China of deliberately delaying the process of granting licenses for the export of rare earths.