Donald Trump expressed optimism regarding US-China relations, emphasizing that the two countries are poised to maintain a strong connection. He acknowledged possessing substantial leverage but chose not to exercise it, as such action could harm China. These statements were made in the Oval Office, with South Korean President Lee Jae-myung present. Trump hinted at the possibility of a 200% tariff on China if they did not supply the US with essential magnets, which are crucial for automotive, electronics, and defense sectors.
Alongside these comments, an executive order was issued to implement a 50% tariff on Indian imports starting August 27. A draft resolution was released, detailing the tariff rates for different goods. The tariff was initially set at 25% but was increased due to India’s purchase of Russian oil.
China is a significant consumer of Russian oil. Despite this, it has not faced equivalent penalties from the US. Former Treasury Secretary Scott Besent stated that before the Russia-Ukraine conflict, China sourced 13% of its oil from Russia, which later increased to 16%. Trump justified the tariff increase on India, citing the country’s indirect purchase of Russian oil.