US President Donald Trump threatened China last night to impose a 200% tariff on Chinese goods entering the US if Beijing does not increase its exports of rare-earth magnets, Agence France-Presse reported, quoted by BTA.
"They have to give us magnets. If they don't give us, we will impose a tariff of about 200%. But I think we will have no problem with that," Trump said in the presence of his South Korean counterpart Lee Jae-myung to journalists in the Oval Office at the White House.
China is the world's leading producer of rare-earth elements, which are used to produce magnets needed for the automotive, electronics and weapons industries. However, Beijing imposed a license to export these strategic materials in early April, a move seen as a retaliation against US tariffs.
Beijing and Washington then began a full-scale trade war, with each side responding to the other's tariff increases.
Since then, negotiations between the two world powers have helped ease tensions, and the Chinese government has promised to expedite the issuance of licenses for a number of US companies.
"I think we have a great relationship with China, I spoke to President Xi (Jinping) very recently, and we should be going to China at some point this year," Trump said.
While acknowledging that Beijing has "trump cards up its sleeve", he reminded: "But we also have some pretty incredible ones". "But I don't want him to use those trump cards, because if I do, it will destroy China," he warned.
American and Chinese officials have met three times in recent months to iron out a number of issues related to their trade relations. At the end of these meetings, the two countries agreed to keep the tariffs they impose on each other at 30% and 10%, respectively, for a period of 90 days, which has already been extended for a second time - until next November. However, Washington has already shown some dissatisfaction, accusing China of deliberately delaying the licensing procedure for rare earth elements exports.
Meanwhile, Chinese negotiator Li Chenggan will visit Washington this week for trade talks with the United States, the "Wall Street Journal" reports. Chengan, who is a top adviser to Beijing's chief negotiator, He Lifen, will meet with U.S. Trade Representative Jamieson Greer and senior Treasury officials, the publication added.