WASHINGTON — In a bold—and unsettling—assertion, President Donald Trump declared that the United States has the economic firepower to “destroy China” if necessary. Speaking in the Oval Office before meeting South Korea’s president, Trump emphasized American leverage over Beijing, hinting at a staggering 200% tariff on rare earth magnets unless China resumes supplying them to the U.S.
“These are incredible cards we hold,” Trump said, while clarifying he does not intend to use them. Yet the warning came with sharp specificity: “If we don’t get magnets, we’ll axe a 200% tariff.” Rare earth elements like magnets are vital for technologies ranging from smartphones to missiles—and China controls most of the global supply.
At the same time, Trump offered a nod toward diplomacy, acknowledging ongoing talks with President Xi Jinping and hinting at a possible trip to China later this year. He insisted the U.S. seeks a “great relationship” with Beijing but isn’t afraid to wield economic clout if pushed.
What this means: The threat targets an Achilles’ heel in global trade—rare earths—with implications for tech, defense, and manufacturing sectors. Tariff spikes at this scale could splinter supply chains and accelerate efforts to reduce dependency on Chinese minerals. But crafting alternatives will take years.
This moment marks another twist in the U.S.–China trade saga: a mix of intimidation, negotiation, and high-stakes economic brinkmanship—with global economies watching closely.
