• Trump threatens a 200% tariff on China if rare earth magnets are not supplied.
• China dominates the global rare earth magnet market, crucial for US manufacturing.
• Recent negotiations between the US and China included a 90-day truce on tariffs.
• Analysts view Trump's tariff threat as proof of China's leverage in trade talks.
• Rare earths play a critical role in products like electric vehicles and smartphones.

During a meeting with South Korean President Lee Jae Myung, US President Donald Trump warned that China must provide rare earth magnets to the United States or face a steep 200 percent tariff. Trump described the tariff as a potential tool that could "destroy China" if activated, emphasizing the importance of magnets in U.S. industries such as electric vehicles and smartphones, according to Al Jazeera, South China Morning Post, and TRT Global.

China, responsible for over 90% of the global magnet supply, has recently strengthened its export controls and licensing requirements in response to US tariffs. Trump's threats come despite a recently agreed 90-day pause on increased tariffs, which allows for ongoing negotiations, indicating the volatility of US-China trade relations, according to Africa News and South China Morning Post.

Analysts suggest that Trump’s renewed tariff threats underscore the significant leverage that China maintains in the global rare earth market. The risks associated with this situation were highlighted by the recent drops in permanent magnet exports to the US by as much as 81% earlier this year, causing disruptions in manufacturing, particularly in the automotive sector, according to TRT Global and South China Morning Post.

Despite Tariff threats, analysts argue that both countries may seek cooperative solutions to ensure the flow of rare earth materials, given their critical role in modern manufacturing. However, true resolution of these tensions appears complicated, as China's massive control over these resources allows it to maintain strategic advantages in negotiations, according to Africa News and South China Morning Post.