Trade fire: China answers Trump with 125% tariff hike

Shafaq News/ Chinese President Xi Jinping publicly weighed in on the escalating trade dispute with the United States for the first time, warning that “there are no winners in a trade war.”

Speaking in Beijing alongside Spanish Prime Minister Pedro Sánchez, Xi said, “Going against the world will only lead to self-isolation,” according to state broadcaster CCTV.

Xi emphasized that China’s progress over the past 70 years has been built on resilience and self-reliance rather than foreign assistance. He reiterated Beijing’s commitment to domestic growth despite mounting external pressure and called for deeper cooperation with the European Union to uphold global trade norms and oppose protectionism.

The remarks followed a sharp escalation in trade tensions after China’s Ministry of Finance announced it would raise tariffs on US imports to 125%, mirroring a move by President Donald Trump, who earlier hiked duties on Chinese goods to the same level.

In a strongly worded statement, China’s Finance Ministry accused Washington of breaching international trade rules, describing the US measures as “abnormally high” and denouncing them as “unilateral bullying and coercion.” The tariffs follow an earlier increase to 84% earlier in the week.

China’s Commerce Ministry signaled that Beijing does not intend to escalate the situation further, stating it would refrain from retaliating against any additional US steps.

Meanwhile, the White House indicated that tariffs on some Chinese products could rise to as high as 145%, citing an existing 20% duty on goods linked to fentanyl production. China has also tightened restrictions on Hollywood film imports and imposed new limits on selected American firms operating within its market.