WASHINGTON (TIP): US President Donald Trump said on April 27 a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute.

“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” Trump told Reuters in an Oval Office interview ahead of his 100th day in office on Saturday.

Nonetheless, Trump said he wanted to peacefully resolve a crisis that has bedeviled multiple US presidents, a path that he and his administration are emphasizing by preparing a variety of new economic sanctions while not taking the military option off the table.

“We’d love to solve things diplomatically but it’s very difficult,” he said.

In other highlights of the 42-minute interview, Trump was cool to speaking again with Taiwan’s president after an earlier telephone call with her angered China. He also said he wanted South Korea to pay the cost of the US THAAD anti-missile defense system, which he estimated at $1 billion. He said he intended to renegotiate or terminate a US free trade pact with South Korea because of a deep trade deficit with Seoul.Trump said he was considering adding stops to Israel and Saudi Arabia to a Europe trip next month, emphasizing he wanted to see an Israeli-Palestinian peace. Trump said North Korea was his biggest global challenge. He lavished praise on Chinese President Xi Jinping for Chinese assistance in trying to rein in Pyongyang. The two leaders met in Florida earlier this month. “I believe he is trying very hard. He certainly doesn’t want to see turmoil and death. He doesn’t want to see it. He is a good man. He is a very good man and I got to know him very well.

“With that being said, he loves China and he loves the people of China. I know he would like to be able to do something, perhaps it’s possible that he can’t,” Trump said.

‘I hope he’s rational’ : Trump spoke just a day after he and his top national security advisers briefed US lawmakers on the North Korean threat and one day before Secretary of State Rex Tillerson will press the United Nations Security Council on sanctions to further isolate Pyongyang over its nuclear and missile programs.

The Trump administration on Wednesday declared North Korea “an urgent national security threat and top foreign policy priority.” It said it was focusing on economic and diplomatic pressure, including Chinese cooperation in containing its defiant neighbor and ally, and remained open to negotiations.

US officials said military strikes remained an option but played down the prospect, though the administration has sent an aircraft carrier and a nuclear-powered submarine to the region in a show of force. Any direct US military action would run the risk of massive North Korean retaliation and huge casualties in Japan and South Korea and among US forces in both countries.

Trump, asked if he considered North Korean leader Kim Jong Un to be rational, said he was operating from the assumption that he is rational. He noted that Kim had taken over his country at an early age.