US President Donald Trump announced on Monday that he expects to visit China during this year or at the latest early next year, pointing to an improvement in economic relations between the two countries despite his threat of additional tariffs on Beijing. Speaking to reporters during a meeting with South Korean President Lee Jae-myung in Washington, Trump confirmed that “at some point this year or early next year at the latest, we will go to China.” He pledged, “We will have a great relationship with China.” Trump also said, “They have cards and we have amazing cards, but I don’t want to play those cards” because they “would destroy China.” Earlier this year, the US and China imposed high tariffs exceeding 100% on each other’s products, disrupting trade.

The two countries then signed a trade truce in May, reducing new US tariffs on China to 30% and Chinese tariffs to 10% until November or until an agreement is reached before then. However, on Monday, Trump threatened to impose a 200% tariff on Beijing if it does not comply with the agreement, saying, “They have to give us the magnets. If they don’t, we will have to impose a 200% tariff.” China is the world’s largest producer of rare earth metals used in making magnets essential for automotive, electronics, and defense industries. Trump added, “But I don’t think we will face that problem.” The trade truce was not easy to reach, with Washington accusing Beijing of violating the agreement and disrupting rare earth metal exports. The countries postponed the implementation of high tariffs for 90 days until November 10.