President Donald Trump expressed a reluctance to impose tariffs on China during a television interview, suggesting a trade war between the world’s largest economies could be avoided.

“We have one very big power over China, and that’s tariffs, and they don’t want them,” the US leader told Fox News in an interview that aired Thursday in the US. “And I’d rather not have to use it. But it’s a tremendous power over China.”

Trump threatened on his second day in office to put 10% tariffs on China as soon as Feb. 1 for allowing fentanyl to “pour” into America. On the campaign trail, the Republican floated levies on China around the 60% mark, which economists have said could decimate trade with the Chinese economy that’s heavily reliant on exports.

The yuan extended gains in both onshore and offshore markets after Trump’s comments. The offshore yuan rose 0.3% against the greenback, while the onshore yuan gained 0.2%.

Trump reiterated his admiration for China and its leader Xi Jinping during the interview, saying he was “like my friend” and that a recent call with him “went fine.” “It was a good, friendly conversation,” Trump said.

“I had a great relationship with him prior to Covid,” he added. “They are a very ambitious country. He’s a very ambitious man.”