US President Donald Trump on Monday (local time) said the United States and China – the world’s two largest economies – “are going to have a great relationship”, even as he warned that he could “destroy China” if he decided to use the “incredible cards” available to him. Adding to it, Trump singled out China’s rare earths policy, warning that unless Beijing continued to supply the US with magnets, “we have to charge them 200% tariff or something,” Reuters reported him as saying.
Speaking in the Oval Office ahead of a bilateral meeting with South Korean President Lee Jae Myung, Trump observed that Washington’s position was stronger than Beijing’s in the ongoing trade dispute.
“We are going to have a great relationship with China...They have some cards. We have incredible cards, but I don't want to play those cards. If I play those cards, that would destroy China. I am not going to play those cards,” Trump told reporters.
What exactly Trump meant by his “cards” was uncertain — whether he was pointing to economic strength, political influence, or some other factor, according to Fox News.
#WATCH | Washington DC | "We are going to have a great relationship with China...They have some cards. We have incredible cards, but I don't want to play those cards. If I play those cards, that would destroy China. I am not going to play those cards" says US President Donald… pic.twitter.com/PDlNPkkmm2— ANI (@ANI) August 25, 2025
Trump also said he had recently spoken with Chinese President Xi Jinping and was weighing a possible visit to meet him as trade negotiations between the two countries continue.
"At some point, probably during this year or shortly thereafter, we'll go to China," Trump said. Last month, President Xi had extended an invitation to Trump.
Extending their trade truce for another 90 days on August 12, Washington and Beijing sought to buy more time for negotiations. Over the past year, Trump escalated tariffs on all Chinese goods, peaking at 145 per cent in April before lowering the rate to the current 30 per cent on most imports. China, in turn, has maintained a 10 per cent tariff on US products.
In April, China tightened restrictions on rare earth exports as part of its retaliation.
Previously, treasury secretary Scott Bessent described China’s oil trade with sanctioned states as another point of contention during their trade talks. As per Fox News, he identified Beijing’s imports of Iranian and Russian oil during negotiations in Sweden, calling it a key dispute.
Bessent noted that beyond Russian and Iranian oil imports, the US is seeking to reduce China’s dominance as the world’s manufacturing powerhouse. He has previously argued that China should rein in its massive export economy and expand its role as a global importer.
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