US-China trade row: Donald Trump says he could ‘destroy China’; hints at 200% tariffs on rare earths

File photograph: US President Donald Trump (Picture credit score: AP)

US President Donald Trump has claimed that the United States holds overwhelming leverage over China, even suggesting that if he selected to make use of it, he could “destroy” the world’s second-largest financial system.Speaking within the Oval Office on Monday earlier than a bilateral assembly with South Korean President Lee Jae Myung, Trump insisted Washington’s place was stronger than Beijing’s within the ongoing trade dispute. “They have some cards. We have incredible cards,” he informed reporters.“But I don’t want to play those cards. If I did, that would destroy China. I’m not going to play those cards.” The US president didn’t make clear whether or not he was referring to financial, political, or strategic instruments, reported Fox News.Trump added that he had spoken lately with Chinese President Xi Jinping and was contemplating a visit to Beijing. “At some point, probably during this year or shortly thereafter, we’ll go to China,” he mentioned, noting that Xi had prolonged an invite.The remarks got here as Washington and Beijing agreed on 12 August to lengthen their trade truce for an additional 90 days to present negotiators extra time to seek out widespread floor. Tariff battles have escalated over the previous yr, with Trump elevating duties on Chinese items a number of occasions. The highest obligation peaked at 145% in April, whereas most Chinese imports are presently topic to a 30% tariff. China has responded with a ten% levy on US imports, in keeping with Fox News.Adding to the pressure, Trump singled out China’s rare earths coverage, warning that until Beijing provided the US with magnets, “we have to charge them 200% tariff or something”, in keeping with information company Reuters.China tightened export restrictions on rare earth objects in April as a part of its retaliation.Treasury secretary Scott Bessent has beforehand described China’s oil trade with sanctioned states as one other sticking level. As per Fox News, he recognized Beijing’s imports of Iranian and Russian oil throughout negotiations in Sweden, calling it a central dispute. Washington argues that income from such exports helps Tehran and Moscow fund destabilising actions.Bessent has additionally pushed for Beijing to scale back reliance on exports and open itself up as a stronger importer in international trade, whereas the US goals to restrict China’s dominance because the world’s manufacturing hub.