Newsweek – Chinese leader Xi Jinping has broken his silence on the deepening trade war with the United States, saying there will be “no winners.”
He warned President Donald Trump that China is “not afraid”—and shortly after his statement, Beijing announced reciprocal tariffs of 125% on all U.S. imports.
Why It Matters
Since Trump became president, tariffs have been a major part of his policy offering and his implementation of tariffs on China has sparked an escalating trade war.
Trump previously raised the tariff on Chinese goods to 104 percent on Wednesday and after China responded with a hike of its own on U.S. goods to 84 percent, Trump increased the tariff rate on Chinese imports to 125 percent.
A composite image shows Chinese President Xi Jinping and U.S. President Donald Trump Getty Images
This came despite Trump announcing he was pausing most of his tariffs on U.S. trade partners for 90 days.
What To Know
“There are no winners in a trade war, and going against the world will only lead to self-isolation,” Xi said on Friday, according CCTV, China’s state broadcaster.
“For over 70 years, China’s development has relied on self-reliance and hard work—never on handouts from others, and it is not afraid of any unjust suppression.”
Xi had appeared to reference the tariff situation on Wednesday. While he did not address the U.S. tariffs in name, he said that he wanted to strengthen strategic bonds with neighboring nations. “We are entering a pivotal stage deeply intertwined with shifts in regional dynamics and global developments,” the statement read.
Meanwhile, China also reacted to Trump’s tariffs by announcing it will reduce the number of U.S. films it imports.
“The wrong action of the U.S. government to abuse tariffs on China will inevitably further reduce the domestic audience’s favorability toward American films,” the China Film Administration, which controls film distribution in the country, said on Thursday. “We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.”
What People Are Saying
After Trump’s tariff hike, China’s Finance Ministry also said in a statement: “The U.S. escalation of tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously undermines the rules-based multilateral trading system.”
President Donald Trump said in a Wednesday post on Truth Social: “Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
What Happens Next
The trade war between the countries shows no signs of abating. The ramifications of this conflict on the global economy remain to be seen.
