Washington DC - President Donald Trump said he would "rather not" impose tariffs on China, after repeated pledges on the campaign trail to hit the country with hefty import levies.

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 president said in the interview which aired Thursday.

After taking office on Monday, Trump said 10% tariffs on all Chinese imports could kick in on February 1.

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On the campaign trail, he touted a levy as high as 60%.

China has warned that there are "no winners" in a trade war and vowed to defend its economic interests.