President Donald Trump said that the United States and China, the two biggest economies in the world, “will have a great relationship”, however, he also warned that if he wanted to, he could “destroy China” by using the “powerful advantages” the US holds. “We have much stronger advantages than they do,” Trump told reporters at the Oval Office before meeting South Korean President Lee Jae Myung. “They have some cards. We have incredible cards. But I don’t want to play those cards. If I did, that would destroy China,” Trump said, adding “I’m not going to play those cards.”
Trump didn’t explain exactly what he meant by these “cards,” leaving it unclear whether he was talking about economic power, political influence, or something else.
#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 mentioned that he recently spoke with Chinese President Xi Jinping and is thinking about visiting China as the two countries continue working on their trade talks. “At some point, maybe later this year or soon after, we’ll visit China,” Trump said, noting that Xi had invited him during their earlier conversations.
The US and China agreed on August 12 to extend their trade truce for another 90 days to allow more time for negotiations. This year, Trump has repeatedly increased tariffs on Chinese goods, with the highest duty hitting 145 per cent in April. Currently, most Chinese imports face a 30 per cent US tariff, while China has imposed a 10 per cent tariff on goods coming from the US.
Trump says China must ensure rare earth magnets or face 200% tariffs
Trump warned that China must guarantee the U.S. supply of rare earth magnets or face tariffs as high as 200 per cent. “They have to give us magnets,” Trump said. “Otherwise, we’d have to charge them a 200 per cent tariff or something like that.” He admitted, however, that such steep tariffs could severely damage trade between the two countries.
“We have a very powerful tool — tariffs,” Trump added. “If we put 100% or even 200% tariffs on China, there would be no trade at all. And that would be fine if it had to happen. But when it comes to magnets, we have a lot of leverage over them, and they also have some leverage over us.”
China’s oil ties with Russia and Iran are flashpoints: US
The US has flagged China’s oil trade with Russia and Iran as a major issue in ongoing trade discussions.
In July, Treasury Secretary Scott Bessent called China’s continued purchase of sanctioned oil a key sticking point during trade talks in Sweden. Bessent had also led earlier negotiation rounds with Chinese officials in May in Geneva and in June in London.
Washington has long argued that revenue from Iran and Russia’s oil exports is used to fund terrorism and other activities that destabilize global security. Still, China remains the biggest buyer of Iranian oil and the second-largest buyer of Russian oil, despite U.S. sanctions.
HIGHLIGHTS
- Trump said the U.S. and China “will have a great relationship,” but warned that America has powerful advantages that could “destroy China” if used.
- Trump demanded that China ensure the US supply of rare earth magnets or face tariffs as high as 200 per cent.
- The U.S. and China extended their trade truce on August 12 for another 90 days to allow more time for negotiations.
- Trump has repeatedly raised tariffs on Chinese goods this year, with the highest reaching 145 per cent in April.
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