During remarks from the Oval Office, Donald Trump highlighted the positive nature of the relationship between the United States and China. He mentioned the possession of significant economic advantages, but he expressed an unwillingness to use them, suggesting that it would be damaging to China. These remarks were made in the presence of South Korean President Lee Jae-myung. Trump implied that a 200% tariff on China could be implemented if they did not supply magnets to the US, which are critical for the automotive, electronics, and defense industries.
Simultaneously, Trump announced a 50% tariff on Indian goods, effective August 27, with a corresponding draft resolution specifying the tariff rates. Initially, a 25% tariff was planned; however, this was increased due to India’s procurement of Russian oil.
China is a major purchaser of Russian oil. Trump’s former Treasury Secretary, Scott Besent, noted that before the Russia-Ukraine war, China purchased 13% of its oil from Russia, and this figure increased to 16% afterwards. Trump stated that the additional tariffs on India were justified because of India’s procurement of Russian oil, and India has defended its actions by stating they purchased oil from Russia to stabilize global oil prices.