The US could use its "pressure capacity" if necessary in negotiations with China.

U.S. Trade Representative Jamieson Greer warned Friday that his country could use its "advantages" over China in trade matters to exert pressure in the current negotiations, although he insisted that his goal is to reach an agreement rather than engage in "a war of retaliation" with Beijing.

"We have a huge advantage over the Chinese. We have certain products that they need. They still depend on the US dollar and will continue to do so for a long time when it comes to their international trade. There's a lot of bargaining power," he said in an interview with Fox News.

Greer, who participated in the third round of trade negotiations with his Chinese counterparts in Stockholm this week, described the exchange as "cordial."

"We are currently having constructive discussions. If we ever feel we need to use our leverage, we will. Of course, we will always do what is in the national interest in terms of national security," he clarified.

The US trade envoy insisted that " the goal is not at all to engage in a war of retaliation or advantage with the Chinese," adding that President Donald Trump "has shown tremendous strength in using certain tools to help them understand the advantage" the US has.

Greer and Treasury Secretary Scott Bessent led the U.S. delegation that participated in a two-day meeting with their Chinese counterparts in the Swedish capital earlier this week.

This new round followed meetings in Geneva and London in May and June, respectively, and a June 5 telephone conversation between Trump and his Chinese counterpart, Xi Jinping, in which the Chinese leader invited the American to Beijing.

Bessent and Greer then announced they would meet with Trump at the White House to brief him on the progress of the negotiations and obtain his approval for a 90-day extension of the tariff truce agreed upon by both countries, which is scheduled to end on August 12, although details of the decision have not yet emerged.

The preliminary agreement reached between the two nations stipulated a reduction of US tariffs on China from 145% to 30% , which in turn reduced its own tariffs from 125% to 10%.

If no agreement is reached before the end of the truce, Beijing could face tariffs of 80 or 85 percent on some of its goods, US negotiators said.