President Trump hints at China visit, warns tariffs could return

US President Donald Trump has said he plans to visit China later this year, or soon afterwards, as Washington and Beijing attempt to stabilise a fragile trade relationship that has rattled global markets, AFP reported. 

At a joint press conference with South Korea’s President Lee Jae Myung in Washington, Trump said he recently discussed the prospect of a visit with Chinese President Xi Jinping. 

“At some point, probably during this year or shortly thereafter, we’ll go to China,” he told reporters. He added: “We’re going to have a great relationship with China.”

But Trump also underlined that the US still holds the upper hand. “They have some cards. We have incredible cards, but I don’t want to play those cards. If I played those cards, that would destroy China,” he declared.

Earlier this year, the two countries imposed steep tariffs that reached triple digits.

The duties paralysed supply chains, with many importers halting shipments until the governments reached an agreement. 

That breakthrough came in April, when both sides agreed to lower tariffs – 30 percent on US imports, 10 percent on China’s.

Still, Trump cautioned that the truce would not hold if China failed to deliver. “They have to give us magnets. If they don’t give us magnets, then we have to charge them (a) 200 percent tariff or something,” he said. “But we’re not going to have a problem, I don’t think, with that.”

China is the world’s largest producer of rare earths, including magnets critical for cars, electronics, and defence. 

The US has accused Beijing of dragging its feet on export licences in the past. For now, the two sides have extended their pause on higher tariffs until November.