President Trump asserted the U.S. holds significant leverage over China, hinting at the potential to severely damage their economy if necessary, during a meeting with South Korean President Lee Jae Myung. He mentioned ongoing trade disputes and recent conversations with President Xi Jinping, considering a trip to Beijing.

US President Donald Trump has claimed that the United States holds overwhelming leverage over China, even suggesting that if he chose to use it, he could “destroy” the world’s second-largest economy.Speaking in the Oval Office on Monday before a bilateral meeting with South Korean President Lee Jae Myung, Trump insisted Washington’s position was stronger than Beijing’s in the ongoing trade dispute. “They have some cards.

We have incredible cards,” he told 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 did not clarify whether he was referring to economic, political, or strategic tools. Trump added that he had spoken recently with Chinese President Xi Jinping and was considering a trip to Beijing. “At some point, probably during this year or shortly thereafter, we’ll go to China,” he said, noting that Xi had extended an invitation.

The remarks came as Washington and Beijing agreed on 12 August to prolong their trade truce for another 90 days to give negotiators more time to find common ground. Tariff battles have escalated over the past year, with Trump raising duties on Chinese goods several times. The highest duty peaked at 145% in April, while most Chinese imports are currently subject to a 30% tariff. China has responded with a 10% levy on US imports.

Adding to the strain, Trump singled out China’s rare earths policy, warning that unless Beijing supplied the US with magnets, “we have to charge them 200% tariff or something”, according to news agency Reuters.China tightened export restrictions on rare earth items in April as part of its retaliation.Treasury secretary Scott Bessent has previously described China’s oil trade with sanctioned states as another sticking point.

He identified Beijing’s imports of Iranian and Russian oil during negotiations in Sweden, calling it a central dispute. Washington argues that revenue from such exports helps Tehran and Moscow fund destabilising activities.Bessent has also pushed for Beijing to reduce reliance on exports and open itself up as a stronger importer in global trade, while the US aims to limit China’s dominance as the world’s manufacturing hub.