Overview

• Speaking at the White House on Monday, President Trump said China must supply rare-earth magnets to the U.S. or face a 200% tariff.
• Trump also claimed the U.S. withheld Boeing parts that grounded about 200 Chinese aircraft and cited aerospace components as negotiating leverage, as Boeing is reportedly near a large China order.
• China controls roughly 90% of global rare-earth magnet production and much of the refining capacity that feeds critical industries from autos to electronics.
• After Beijing’s spring curbs, Chinese magnet shipments to the U.S. rebounded sharply, surging about 660% month over month in June and rising further in July, according to government data.
• The remarks come during a temporary U.S.–China trade truce extended to mid-November, and some analysts characterized the tariff threat as rhetorical while warning it could reheat tensions and unsettle supply chains.