U.S. President Donald Trump has issued a significant threat, warning that he will impose a hefty 200% tariff if China restricts the export of rare-earth magnets to the U.S., escalating tensions within the ongoing trade war. This ultimatum comes at a crucial juncture as both nations recently extended their truce for another 90 days, aiming to resolve longstanding trade disputes. However, underlying tensions remain prevalent, particularly concerning rare-earth materials essential for various sectors such as cars, electronics, and defense technology. 82% of China’s rare earth export goes to the U.S. according to a report by the Minerals Management Service (MMS). Trump fears American dependence on these crucial minerals. This threat aims to secure a steady flow of rare-earth magnets from China while also bolstering national security and protecting American jobs.