President Donald Trump urged U.S. defense contractors to expand domestic magnet production on Wednesday, arguing that magnets are vital to national security and could become a profitable business as Washington seeks to reduce reliance on China for critical materials.
Speaking at the Pennsylvania Defense & Innovation Summit, Trump repeatedly encouraged companies in attendance to enter the sector.
"Do magnets, OK?" Trump said. "I'll tell you how to make money. Do magnets."
Trump did not identify specific military systems or production targets, but rare-earth magnets are used across defense manufacturing, including aircraft, missiles, radar systems and other electronic equipment. China dominates much of the global supply chain for rare-earth processing and high-performance magnets, creating concerns in Washington about potential disruptions.
"We need magnets," Trump said, adding that the United States had the necessary materials but had not developed sufficient production capacity. He also suggested that federal contracting officials could support companies entering the industry.
Trump: "Magnets! Do magnets, okay? I'll tell you how to make money. Do magnets. It's one thing we don't have, but we're getting close. I guarantee you it's gonna be susssessullll" pic.twitter.com/70cd3Zgr9O
— Aaron Rupar (@atrupar) July 15, 2026
The remarks echoed comments Trump made in November 2025, when he said China could use its control of rare-earth supplies and magnets as leverage over global manufacturing.
"If China refused to give magnets, because they have a monopoly on magnets," Trump said, industries including automobiles, electronics and telecommunications would be affected. He claimed that the threat of steep U.S. tariffs had persuaded Beijing to reach an agreement with Washington.
Trump's focus on magnets has also produced inaccurate statements in the past. During a January 2024 campaign rally in Iowa, he claimed that pouring water on magnets would render them ineffective while criticizing electromagnetic systems used on the USS Gerald R. Ford aircraft carrier.
"Give me a glass of water, let me drop it on the magnets, that's the end of the magnets," Trump said.
Water does not generally eliminate magnetic properties, and magnetic systems can operate while submerged. His earlier remarks focused on his preference for steam-powered aircraft carrier catapults and hydraulic elevators over electromagnetic alternatives.
