Donald Trump expressed his positive view on the state of US-China relations, stating that they are heading in a favorable direction. He implied that the US has strong economic advantages but doesn’t intend to utilize them, as it could harm China. This commentary was delivered in the Oval Office, with South Korean President Lee Jae-myung in attendance. Trump suggested the potential for a 200% tariff on China if the country did not provide magnets to the US, which are necessary for the automotive, electronics, and defense sectors.
In addition, Trump issued an executive order to implement a 50% tariff on Indian imports starting August 27. A draft resolution was released detailing the applicable tariff rates on various goods. While the initial plan was a 25% tariff, this was increased due to India’s purchase of Russian oil.
Although China is a significant importer of Russian oil, it has not been subject to equivalent penalties. Former Treasury Secretary Scott Besent explained that China’s oil imports from Russia rose from 13% to 16% before and after the conflict in Ukraine. Trump justified the tariffs on India due to its procurement of Russian oil, which India has defended as a move to stabilize global oil prices.