Tensions between Washington and Beijing are once again on the rise. On Monday, Donald Trump warned that the United States is prepared to impose 200% tariffs on imports of Chinese magnets if Beijing does not increase its supply to U.S. industry. Speaking to reporters, he added: “I could destroy China, but I won’t.”

⚡ The Rare Earths Dispute

In April, China restricted exports of rare-earth magnets – essential components for smartphones, chips, electric vehicles, and even defense systems. This move came after the U.S. increased tariffs on Chinese imports.

Beijing currently controls around 90% of the world’s magnet supply, leaving the U.S. and its allies in a vulnerable position as they scramble to secure key technologies.

📉 Intel, Tariffs, and Rising Stockpiles

The dispute intensified after the U.S. recently acquired a 10% stake in Intel, one of the world’s largest chipmakers. However, Intel remains heavily reliant on Chinese rare-earth metals.

Interestingly, China’s exports of rare earths actually rose by over 4,700 tons in July compared to June, giving Beijing additional leverage in negotiations.

Trump responded by signing an executive order that extended a 90-day delay on new tariff hikes. Without it, tariffs on Chinese goods would have jumped to 145%.

📊 Historic Surge in Tariff Rates

Earlier in 2025, Washington and Beijing agreed to a temporary tariff truce – cutting U.S. tariffs from 145% to 30% and China’s tariffs from 125% to 10%. But this deal is set to expire on November 9.

Between January and April 2025, the average U.S. tariff rate skyrocketed from 2.5% to 27% – the highest in more than a century. After later adjustments, it fell to 18.6%, but still remains far above historical norms. In July, tariffs accounted for 5% of federal revenues, more than double their usual share.

🛡️ Trump’s Tariffs: Steel, Cars, and a Universal Duty

Trump invoked Section 232 of the 1962 Trade Expansion Act, raising tariffs on steel, aluminum, and copper to 50%. He also imposed a 25% tariff on car imports from most countries and hinted at new tariffs on pharmaceuticals, semiconductors, and other goods.

In early April, he went even further. Citing the International Emergency Economic Powers Act (IEEPA), Trump announced a universal 10% tariff on all imports from nations without bilateral trade deals. This policy took effect on April 5.

Although temporarily suspended after the 2025 stock market crash, the tariffs were reactivated on August 7 – reigniting tensions not only with China but also with Canada and Mexico.

📦 End of the Small Package Loophole

Another significant move is the removal of the de minimis exemption for shipments under $800. Starting August 29, 2025, even small parcels from Chinese e-commerce platforms will face full tariffs, likely raising prices for millions of American online shoppers.

👉 Trump’s trade strategy continues in the spirit of tariff war escalation. While it boosts government revenue in the short term, the long-term impact on U.S. companies, consumers, and relations with China remains highly uncertain.


#TRUMP , #china , #Tariffs , #TradeWar , #USPolitics

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