U.S. President Donald Trump stated that Washington holds "incredible cards" against China and suggested that using them could "destroy" the world’s second-largest economy.

He added, however, that the United States intends to maintain a "great relationship" with Beijing.

The remarks came on the eve of a deadline for Trump’s proposed fifty per cent tariff on Indian goods.

Speaking from the Oval Office before a meeting with South Korean President Lee Jae Myung, Trump said, "They have some cards. We have incredible cards, but I don’t want to play those cards. If I play those cards, that would destroy China. I am not going to play those cards."

He did not specify whether the leverage referred to economic, political, or strategic measures.

Trump also referenced his recent discussion with Chinese President Xi Jinping, confirming he was considering a visit to Beijing following an invitation from Xi.

"At some point, probably during this year or shortly thereafter, we’ll go to China," he said.

Relations between Washington and Beijing have been marked by trade tensions, with U.S. tariffs on Chinese imports raised to as high as one hundred and forty-five per cent in April.

Disputes also arose over China’s rare earths exports, with Trump suggesting tariffs of "two hundred per cent or something" if Beijing limited supplies.

Despite these strains, the two governments agreed to a trade truce earlier this month.

On August 12, both sides extended the truce for an additional ninety days to allow further negotiations.

It is not clear why Trump is using such aggressive words, when it is widely understood that China could also damage the U.S. economy if it chose to. The key is to protect each other’s interests rather than destroy one, since harming either side would automatically harm the other.