United States President Donald Trump has said that China must give the US more magnets or “we have to charge them 200 percent tariff or something” amid a trade dispute between the two nations.

The US president made the claim to reporters on Monday.

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China is increasingly sensitive about rare earth elements and its control over their supply, adding several rare earth items and magnets to its export restriction list in April in retaliation for tariff hikes by the US.

Beijing represents 90 percent of the global magnet market, which is critical to key products, including semiconductor chips used in products like smartphones.

The remarks come after the US announced a 10 percent stake in Intel, one of the world’s largest semiconductor chipmakers, which rely on rare earth materials for their products.

China’s exports of rare earth minerals surged in July, with data from the General Administration of Customs showing imports of rare earth ore rose by more than 4,700 tonnes compared to June.

The US president’s comments come amid the ongoing tariff standoff between the world’s two largest economies, which had shown signs of easing earlier this month. President Trump signed an executive order extending a 90-day deadline on tariffs against Chinese goods, allowing more time for negotiations.

Had the order not been signed, tariffs would have jumped to 145 percent. In May, the two countries had agreed on 30 percent US tariffs, while dropping levies to 10 percent, down from 125 percent.