Trump wants magnets from China and threatens tariffs

Otherwise, "200 percent tariffs or something like that" would have to be imposed, the US president said at a meeting with South Korean President Lee Jae Myung at the White House.

At the same time, he conceded that such drastic measures would mean a collapse in trade with China. "We have a much more powerful tool, which is tariffs. If we impose 100 percent, 200 percent tariffs, then we would no longer trade with China at all". This would be fine if it had to be.

Truce in the tariff dispute continues

Rare earths are metals that are needed for many modern devices - such as cell phones, wind turbines, electric cars and weapons. Magnets made from them are particularly important. China is the world leader in the extraction and processing of these raw materials, while the USA is dependent on imports. Beijing had restricted the export of metals and magnets in the trade conflict.

Trump's latest statements are in contrast to his recent more conciliatory tones. It was only at the beginning of August that he announced an extension of the truce in the tariff dispute with China for a further 90 days. Both countries had agreed in May to suspend new punitive measures for the time being in order to make progress on trade issues and topics such as the supply of rare earths and access to US AI chips.

As reported by the Wall Street Journal, a Chinese delegation led by Chinese negotiator Li Chenggang is to travel to Washington this week for further talks.