President Donald Trump attempted to lower the temperature in the U.S.-China trade war as both sides wrangle over tariffs and export controls.
In an interview with Fox News’s Sunday Morning Futures, he also mixed in some flattery for Chinese President Xi Jinping while still airing some grievances.
“I’m not looking to destroy China,” Trump said.
Earlier this month, he announced an additional 100% tariff and software restrictions on China, which has a stranglehold on the world’s supply of rare earths and imposed tighter export controls that threaten a wide range of industries.
“Now they’ve forced me to charge them what is the equivalent of 155% to 157%,” Trump told Fox.
His tone contrasts with more ominous rhetoric in August, when he said the U.S. Holds the upper hand versus China.
“They have some cards. We have incredible cards. But I don’t want to play those cards. If I did, that would destroy China,” Trump told reporters, adding, “I’m not going to play those cards.”
In fact, analysts have noted other ways that the U.S. Could target China’s economy beyond tariffs. In a recent note, Capital Economics pointed to the commercial aviation supply chain, software exports, and U.S. Dominance of global financial infrastructure, among other things.
Markets have been whipsawed by the latest round of escalation and de-escalation in the U.S.-China trade war. After stocks tumbled when Trump announced the new 100% tariff, they rebounded sharply after he said, “Don’t worry about China” and vowed that everything will be fine.
Treasury Secretary Scott Bessent is due to meet Chinese Vice Premier He Lifeng this week to continue talks ahead of a meeting between Trump and Xi at the end of this month on the sidelines of a regional economic summit in South Korea.
In Trump’s latest Fox interview, he said China is “always looking for an edge” and has “ripped off our country for years.” He also reiterated that triple-digit tariffs on China aren’t sustainable and touted his positive relationship with Xi.
“I get along great with him. He’s a very strong leader, a very, you know, amazing man,” he added. “And you look at what he’s done and … his life is an amazing story. It’s a story for a great movie. I think we’re going to be fine with China, but we have to have a fair deal.”