US President Donald Trump said Monday that China must supply more magnets or face tariffs of up to 200 percent, highlighting the strategic importance of rare earth elements. China controls about 90 percent of the global magnet market, essential for products like semiconductor chips used in smartphones, according to Al Jazeera.

The remarks follow China’s April restrictions on rare earth exports in retaliation for US tariff hikes, even as exports surged in July. Trump recently extended a 90-day deadline on tariffs, allowing more time for negotiations, and the US also announced a 10 percent stake in Intel, a major chipmaker dependent on these materials.