US will have 'great relationship' with China: Trump
What's the story
United States President Donald Trump has said that the US will have a "great relationship" with China. He made the statement on Monday, just a day before his threat of imposing 50% tariffs on Indian imports takes effect. Trump said that while both countries have "incredible cards," he does not want to play them, as it would "destroy China." It was unclear whether Trump's "cards" were about economic leverage, political influence, or something else.
Tariff impact
Trump's tariff threat to India
Trump had previously threatened to impose 50% tariffs on Indian imports, a decision that is set to take effect on August 27. The president had linked the increased tariffs to India's purchase of Russian oil. However, despite China being the largest buyer of Russian oil, no such measures were taken against it by the US.
Tariff extension
US extends tariff deadline for China
Trump recently extended the tariff deadline for China by another 90 days, after it was initially set to end on August 12. The US has imposed 20% duties on fentanyl-related tariffs for China, bringing the total tariffs on Chinese imports to 30%. Trump's Treasury Secretary Scott Bessent had defended not penalizing China over its Russian oil purchases, calling it "suboptimal."
Magnets
US demand for magnets
Trump, however, has reportedly suggested that he might impose a 200% tariff on China if they do not provide the US with magnets, which are essential for the automotive, electronics, and defense industries. "They have to give us magnets," Trump stated. "If they don't give us magnets, then we will have to charge them a 200 percent tariff or something," news agency AFP quoted him as saying.
Trade dispute
India pointed out that it was being penalized unfairly
In response to the increased tariffs on its exports, India had pointed out that it was being penalized for "actions that several other countries are also taking in their own national interest." Trump's treasury secretary had claimed that India made "huge" profits from the oil trade after the Ukraine war began. He said that while India's trade of Russian oil was less than 1% before, it later rose to 42%.