Trump threatens 200% tariff hike for China if no rare-earth magnets supplied

The US president threatened Beijing with a steep tariff increase if the country did not supply rare-earth magnets, which are crucial for a range of products, such as smartphones and electric vehicles, to Washington.

Another tariff threat from Washington: US president Donald Trump told journalists on Monday that China could face 200% tariffs if it did not supply the United States with rare-earth magnets.

China is the world's largest supplier of of these critical materials, which are notably crucial for building electric vehicles.

In the ongoing trade war between Washington and Beijing, the Chinese government has tightened its grip on exports of several rare metals, a move not appreciated by the White House. The 200%-tariffs threat comes despite a 90-day pause on tariff hikes that both countries agreed on on 12 August. The 90-day truce expires in mid-November, which allows more time for negotiations between the two countries, which threatened each other with a spiralling increase of mutual tariffs on exported goods in recent months.

The effect of Trump's hint at a hypothetical hike despite the pause on negotiations is still unclear, and no official comment from Beijing is known so far.