In his first direct response to escalating trade tensions, Chinese President Xi Jinping broke his silence on U.S. tariffs by warning President Donald Trump that China is "not afraid" of a trade war. The statement marks a significant geopolitical turn as Beijing seeks to forge stronger economic alliances with Europe to counter Washington&rsquo;s aggressive tariff regime.
Speaking alongside Spanish Prime Minister Pedro S&aacute;nchez in Beijing on Friday, Xi emphasized that "there is no winner in a tariff war" and said that unilateral moves by the United States would only lead to "self-isolation." His remarks came amid intensifying friction between the world&rsquo;s two largest economies, following a recent American claim that it had successfully &ldquo;isolated&rdquo; China on the global stage.
In a swift retaliatory move, China announced it would raise tariffs on U.S. goods to an effective rate of 125%, with the new measures set to take effect on April 12. This follows President Trump&rsquo;s decision to impose a total of 145% duty on Chinese imports&mdash;a move that has alarmed global markets and trade partners alike.
"The successive imposition of excessively high tariffs on China by the U.S. has become nothing more than a numbers game, with no real economic significance," said a spokesperson for China&rsquo;s Commerce Ministry. The Ministry added that the trade war was not just about economics, but about defending sovereignty and fairness in the global order.
President Xi used his meeting with S&aacute;nchez to signal a broader strategic pivot&mdash;one aimed at closer cooperation between China and the European Union. Highlighting the combined economic output of China and the EU, which now exceeds one-third of global GDP, Xi said the two sides have formed a "close relationship of economic symbiosis." He called for joint efforts to safeguard globalization, resist unilateralism, and uphold the international trade system.
&ldquo;This not only safeguards the legitimate rights and interests of China and the EU, but also serves to maintain fairness and justice within the international community while upholding international rules and order,&rdquo; Xi said.
For his part, S&aacute;nchez underscored that China is an essential partner for the EU and reiterated Europe's support for open trade and multilateralism. &ldquo;There is no winner in a trade war,&rdquo; S&aacute;nchez said, adding that Spain and the EU are committed to working closely with China to confront shared global challenges&mdash;from climate change to poverty&mdash;and protect the international trade framework.
In an additional statement, China&rsquo;s Commerce Ministry hinted at broader retaliatory options beyond tariffs, signalling the potential suspension of cooperation on key issues such as fentanyl regulation, restrictions on U.S. poultry imports, limitations on market access for American service industries, and scrutiny over the earnings of U.S. firms in China from intellectual property.
&ldquo;We have noticed that, under pressure from China and other parties, the U.S. has temporarily postponed the imposition of high reciprocal tariffs on certain trading partners. This is merely a symbolic and minor step,&rdquo; said the spokesperson, emphasizing that &ldquo;if the U.S. persists in substantively harming China&rsquo;s interests, China will resolutely take countermeasures and fight to the end.&rdquo;
President Xi concluded by reaffirming China&rsquo;s resilience: &ldquo;Over the past 70 years and more, China has achieved development through self-reliance and arduous struggle&mdash;never relying on others&rsquo; mercies, still less fearing any unreasonable suppression.&rdquo;
With global alliances shifting and trade tensions mounting, Xi&rsquo;s statements and China&rsquo;s retaliatory actions signal that the tariff war is entering a new and uncertain phase.

Spanish Prime Minister Pedro Sánchez and Chinese President Xi Jinping in Beijing

Xi calls for stronger EU-China trade ties as tensions rise with U.S. over tariffs and isolation

Xi Warns Trump, Backs Global Trade & Multilateralism

Xi calls for stronger EU-China trade ties as tensions rise with U.S. over tariffs and isolation

April 11, 2025 | 16:03 IST