Washington | Tue, 26 Aug 2025

President Donald Trump stunned Washington on Monday with a bold declaration that the United States holds economic “cards” strong enough to cripple China—but that he is choosing not to use them.

Speaking alongside South Korean President Lee Jae-myung at the White House, Trump struck a mix of bravado and restraint. “We’ll have good relations with China. They have some cards, but we have tremendous cards. I won’t play those cards, because if I did, China could be destroyed,” he said.

Tariffs Threat: 200% on the Table

Trump went further, warning that if Beijing cuts off supplies of vital magnets—materials essential for America’s auto, electronics, and defense industries—the U.S. is ready to slap 200% tariffs on Chinese imports. “They must give us magnets. If they don’t, we’ll have to go 200 percent—or something like that,” Trump warned.

The comments come after Trump extended China’s tariff deadline by 90 days. Currently, Beijing faces a 30% effective tariff on many exports to the U.S., including penalties tied to fentanyl shipments.

Strength and Restraint

Even as he flashed America’s economic firepower, Trump cast himself as a leader holding back for the greater good. “I won’t play those cards,” he said, suggesting the U.S. could crush China’s economy but would avoid doing so—for now.

The blunt warning adds fresh tension to U.S.-China ties at a moment when both sides are locked in battles over trade, technology, and security.

000