Former US President Donald Trump praised the relationship with China, stating that it is on a positive trajectory. He indicated that the US possesses advantageous leverage but is hesitant to use it, suggesting that employing such measures could be detrimental to China. These comments were made during an address at the White House’s Oval Office, with South Korean President Lee Jae-myung in attendance. Trump alluded to the potential for imposing a 200% tariff on China if they did not provide the US with magnets, which are essential components in various industries such as automotive, electronics, and defense.
Simultaneously, Trump issued an order to impose a 50% tariff on Indian goods, effective August 27. A draft resolution outlining the specific goods and tariff rates was also released. The initial plan was to impose a 25% tariff on India. However, due to India’s purchase of Russian oil, the penalty was increased.
China is a major buyer of Russian oil but has not faced similar penalties. Former Treasury Secretary Scott Besent noted that China’s oil purchases from Russia increased from 13% to 16% before and after the Russia-Ukraine war. The rationale provided for the additional tariffs on India stems from the country’s involvement in purchasing Russian oil. India has defended its actions, stating it purchased oil from Russia to stabilize global oil prices.
