'It would destroy China': Trump says US holds 'incredible cards' over Beijing, hints at 200% tariffs

US President Donald Trump on Monday said the United States and China “are going to have a great relationship” — but warned that if he played the “incredible cards” at his disposal, it would “destroy China,” according to remarks made during a meeting with South Korean President Lee Jae Myung.

Speaking from the Oval Office, Trump declared that the U.S. holds a superior position in its ongoing economic contest with Beijing. “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,” he said.

Trump did not specify what the “cards” entailed — whether referring to economic leverage, geopolitical influence, or other undisclosed tools. Fox News noted that the ambiguity left room for interpretation.

The comments come amid a fragile trade truce between the two countries, which was extended by 90 days on August 12. Trump confirmed he had recently spoken with Chinese President Xi Jinping and is considering a visit to China. “At some point, probably during this year or shortly thereafter, we'll go to China,” he said, referring to Xi’s invitation.

Over the past year, the U.S. imposed escalating tariffs on Chinese goods, peaking at 145% in April before moderating to 30% on most imports. China responded with a 10% levy on American products.

Trump also issued a pointed warning over China’s rare earth policy, following export restrictions introduced in April. He suggested that if China fails to continue supplying rare earth magnets to the U.S., it may face retaliatory tariffs of up to 200%, Reuters reported.

Additionally, Treasury Secretary Scott Bessent highlighted China’s continued oil trade with sanctioned states like Iran and Russia as a sticking point. Bessent, during recent talks in Sweden, said the administration seeks to curb Beijing’s influence as a global manufacturing hub and push it toward becoming a more balanced trading partner.