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US President Donald Trump has threatened to impose a 200% tariff on Chinese goods if the country does not increase exports of rare earth magnets to the United States. He added that this tariff shows that the US would practically not do any business with China.
"They should give us magnets, if they don't give us magnets, then we should put a 200% tariff on them or something like that," Trump told reporters as he waited for South Korean President Lee Jae Myung in the Oval Office.
“But we’re not going to have a problem with that,” Trump added. Trump stressed that a 200% tariff would effectively mean the US “would not do any business with China.”
That's essentially what happened when Trump imposed a 145% tariff on Chinese goods, which he has since reduced to 30%, earlier this year. China responded with a 125% tariff on American goods, which it has since reduced to 10%. While the higher tariffs were in place, trade between the U.S. and China almost ground to a halt.
While the US and China recently agreed to a 90-day truce to keep lower tariffs in place, Chinese exports of rare earth magnets have continued to be a source of contention, with the Trump administration alleging that China is deliberately blocking the arrival of these essential materials to the US.
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