Overview

• Trump said the United States has tools that could "destroy" China but emphasized he does not intend to use them.
• He linked his warning to Beijing’s rare-earth policy and suggested retaliatory tariffs of roughly 200% if supplies of magnets are cut off.
• Trump said he recently spoke with Xi Jinping and is considering a visit to China later this year or soon after.
• The comments come during an extended 90-day tariff truce after U.S. duties on Chinese imports peaked near 145% in April and settled around 30% on most goods, with China imposing a 10% levy in response.
• Treasury Secretary Scott Bessent pointed to China’s oil purchases from Iran and Russia as a continuing obstacle in the negotiations.