Asked in an interview with Fox News if he could make a deal with Chinese leader Xi Jinping on Taiwan and trade, Trump replied: "I can do that because we have something that they want, we have a pot of gold."
"We have one very big power over China, and that's tariffs, and they don't want them, and I'd rather not have to use it. But it's a tremendous power over China," the mercurial president said in the interview which aired Thursday in the United States.
After taking office on Monday, Trump said 10 percent tariffs on all Chinese imports could kick in on February 1 -- and on the campaign trail touted a levy as high as 60 percent.
On Friday Beijing called for the US and China to resolve their differences through "dialogue and consultation".
"China-US economic and trade cooperation is mutually beneficial," foreign ministry spokeswoman Mao Ning said.
"Trade wars and tariff wars have no winners and don't serve anyone's interests or the world's interests," she added.
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