'We're going to have a lot of magnets in a pretty short period of time. In fact, we'll have so many we won't know what to do with them,' US president says
President Donald Trump threatened Monday to impose a 200% tariff “or something” on China if it does not supply the US with magnets, though he added he believed “we’re not going to have a problem.”
"They have to give us magnets. If they don't give us magnets ... we have to charge them a 200% tariff or something," Trump told reporters as he hosted South Korean President Lee Jae Myung at the White House. "But, we're not going to have a problem," he added.
"China, intelligently went and they took a monopoly of the world's magnets," he said, suggesting that "nobody needed magnets until they convinced everybody 20 years ago, 'let's all do magnets.'"
"There were many other ways that the world could have gone, but so far, it’ll take us probably a year to have them. We're heavy into the world of magnets now, only from a national security standpoint, but we have a powerful thing," Trump noted.
Trump also pointed to Washington’s decision to block the export of Boeing aircraft parts to China, saying 200 of the country’s planes were “unable to fly” because Beijing withheld magnets.
"I could have held them back. I didn't do that because of the relationship I have. And they're flying. Their planes are now flying," US president said.
"Therefore we weren't given (magnets), but we have a much more powerful thing: That's tariffs. If we want to put 100%, 200% tariffs on, we wouldn't do any business with China," Trump stressed.
On the issue of magnets, Trump said the US had gained leverage over China, while acknowledging Beijing still holds “some” power over Washington.
"With magnets, we're going to have a lot of magnets in a pretty short period of time. In fact, we'll have so many we won't know what to do with them," Trump noted.
The president added that Washington holds “bigger and better cards” than China, while emphasizing his personal ties with Beijing.
"I think we have a great relationship ... At some point, probably during this year or shortly thereafter, we'll go to China, and I think we're going to see a magnificent sight. It's a great country," he added.
In April, Beijing imposed restrictions on exports of key magnets used in advanced technologies, including wind turbines, electric cars, and MRI scanners, requiring companies to obtain licenses.
The move was seen as retaliation for US tariffs on Chinese goods. Some of the restrictions were later eased under a preliminary agreement between the two countries.
China continues to dominate the global market, producing more than 90% of the world’s rare earth magnets and other rare earths, which the US has been trying to reduce its dependency on.
In July, Apple and miner firm MP Materials announced that they will invest $500 million in a facility for recycling rare earth magnets that will bolster the tech company’s US base.
