President Donald Trump, during a press briefing at the White House ahead of a meeting with South Korean President Lee Jae Myung, claimed that the United States holds ‘incredible cards’ that could potentially ‘destroy China’ if implemented, though he has ruled out using them. This came as the U.S. and China continued their ongoing trade negotiations, with both sides struggling to reach a resolution. Trump emphasized that the two countries would ‘have a great relationship’ despite the existing trade tensions.
During the briefing, Trump stated, ‘We have much bigger and better cards than they do. They have some cards. We have incredible cards. But I don’t want to play those cards. If I did, that would destroy China.’ He did not specify what these ‘cards’ might refer to, suggesting they could be economic, political, or another form of leverage. The ambiguity of these threats has led to speculation about the potential measures at the U.S. administration’s disposal, including further trade sanctions, diplomatic pressure, or other undisclosed tactics.
As trade discussions continued, Trump also hinted that he might consider a meeting with Chinese President Xi Jinping in the near future. ‘At some point, probably during this year or shortly thereafter, we’ll go to China,’ he said, indicating that the idea of a meeting with Xi has been discussed. The possibility of such a meeting could be a strategy to ease tensions or to push for more favorable trade terms. The White House has been working on resolving the trade dispute, and Trump has been under pressure to address the ongoing issues between the two nations.
On August 12, the U.S. and China had agreed to extend their trade truce for another 90 days, providing negotiators with additional time to reach a comprehensive agreement. Despite this temporary agreement, trade tensions persist, with the U.S. imposing tariffs on Chinese goods at a rate of 30%, while China has imposed a 10% tariff on U.S. imports. The ongoing trade war has had a significant impact on the global economy, with both nations seeking to protect their domestic industries and influence trade relations globally.
Other trade flashpoints have included China’s significant oil imports from Russia and Iran. Treasury Secretary Scott Bessent highlighted these as key points of contention during recent trade negotiations. The U.S. has expressed concerns over the role of these oil imports in funding activities that are perceived as destabilizing, such as supporting regimes or funding terrorism. Despite U.S. sanctions, China remains the top importer of Iranian oil and the second-largest importer of Russian oil. These issues have further complicated the trade negotiations, adding more layers of complexity to the ongoing trade dispute.
Additionally, the U.S. has sought to curb China’s role as the world’s manufacturing powerhouse, urging it to shift from an export-dominated economy to one that is more focused on imports. This strategy is part of a broader effort to reduce the trade imbalance and promote a more balanced global trade environment. The implications of this shift could have a significant impact on global trade dynamics and economic relationships, highlighting the ongoing challenges in resolving trade tensions between the two major economic powers.