Washington, D.C.: President Donald Trump issued a stark warning to China during remarks at the White House, suggesting the United States possesses overwhelming leverage that could, if used, “destroy” the Chinese economy. Though he insisted he had no intention of deploying such power, the comments came alongside threats of steep tariffs on Chinese exports, specifically rare earth magnets.
Speaking to reporters in the Oval Office ahead of a meeting with South Korean President Lee Jae Myung, Trump touted the United States’ strategic advantages in its ongoing trade rivalry with Beijing.
“They’ve got some cards, but we’ve got incredible cards,” Trump said. “I don’t want to play them, because playing them would destroy China. And I’m not looking to do that.”
While Trump did not elaborate on what those “cards” entailed, his language suggested confidence in America’s economic and geopolitical influence. Whether he was referencing financial mechanisms, trade leverage, military capabilities, or diplomatic channels remained unclear.
Despite the sharp rhetoric, Trump also struck a conciliatory tone at times, suggesting a potential thaw in U.S.–China relations. He revealed recent conversations with Chinese President Xi Jinping and said a visit to China might be on the horizon.
“President Xi and I had a very good talk recently,” he said. “We’re looking at a possible visit, maybe later this year or not long after.”
The two nations, which have been engaged in a prolonged trade dispute, agreed earlier this month to extend their existing trade truce by 90 days to allow further negotiation. The current U.S. tariff on most Chinese imports stands at 30 percent, with some categories, including electronics and textiles, facing duties as high as 145 percent. In retaliation, China has maintained a 10 percent levy on U.S. products.
But the former president escalated the stakes Monday with a new threat: imposing tariffs as high as 200 percent if China fails to ensure the U.S. has access to rare earth magnets — a critical component in a range of technologies from electric vehicles to military hardware.
“They need to guarantee us magnets,” Trump said. “Otherwise, we’re looking at something like a 200 percent tariff.”
He acknowledged the risks of such an aggressive trade measure, noting it could bring commerce between the two countries to a near halt.
“If we slap 100 or 200 percent tariffs on them, there won’t be much trade left,” he said. “And frankly, that would be okay if it came to that. But we’re trying to avoid it.”
Rare earth magnets, largely produced in China, are viewed as a strategic vulnerability for the U.S., especially as global supply chains shift and competition intensifies in the clean energy and defense sectors.
Trump’s comments, while not official policy, reflect his continued influence over Republican foreign trade narratives — particularly as the 2026 midterm elections approach and speculation around another presidential run grows.
Analysts remain divided over whether the former president’s remarks signal an imminent policy shift or a calculated attempt to apply pressure ahead of future negotiations.
Regardless, his message was clear: the U.S., in his view, holds the upper hand — and he’s prepared to use it if necessary.
