Xi says China ‘not afraid’ as Beijing raises tariffs on US goods to 125% in latest escalation of trade war
By
Nectar Gan, CNN
Updated 4:31 AM EDT, Fri April 11, 2025
Chinese leader Xi Jinping attends a bilateral meeting with Spanish Prime Minister Pedro Sanchez at Diaoyutai Guest House in Beijing on Friday.
Andres Martinez Casares/Pool/AFP/Getty Images
Hong KongCNN —
Chinese leader Xi Jinping has said his nation is “not afraid,” in his first public comment on the escalating trade war with the United States, as Beijing raised tariffs on US goods to 125%.
The tariff hike is the latest in a tit-for-tat battle between the world’s two largest economies, after Trump raised tariffs on China to 145%. However, China has indicated it does not intend to go higher than 125%, saying it would be meaningless to engage in further escalation.
“The successive imposition of excessively high tariffs on China by the US has become nothing more than a numbers game, with no real economic significance,” a spokesperson for China’s Commerce Ministry said in a
statement Friday.
“It merely further exposes the US practice of weaponizing tariffs as a tool of bullying and coercion, turning itself into a joke,” the spokesperson added.
The trade war between the world’s two economic superpowers has tanked international markets and fueled fears of a global recession.
“There are no winners in a trade war, and going against the world will only lead to self-isolation,” Xi told Spanish Prime Minister Pedro Sanchez in Beijing on Friday,
according to state broadcaster CCTV.
“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 added.
The Chinese leader had remained publicly silent on the tariff war until now, but struck a defiant note in his first remarks – doubling down on messages of strength and resilience already broadcast by Chinese officials and state media.
“Regardless of how the external environment changes, China will remain confident, stay focused, and concentrate on managing its own affairs well,” Xi was quoted as saying by CCTV.
As the rest of the world received a 90-day reprieve from Trump’s “reciprocal” tariffs this week, the president moved to focus his trade war on China. Prior to announcing its latest tariff hike on Friday, Beijing said it would curb the import of Hollywood movies, after having hiked its own tariffs on the US to 84% and restricted some American firms from doing business in China or importing Chinese dual-use goods.
The unprecedented tariffs threaten to decimate trade between the world’s two largest economies and further damage relations in other areas, with no obvious offramp in sight.
Diplomatic offensive
CNN
reported on Thursday that Trump is waiting for Xi to reach out – and has told his team that the US will not make the first move; but Beijing has repeatedly refused to arrange a leader-level phone call.
Rather than calling Trump to negotiate tariffs, Xi has instead launched a week of high-stakes diplomacy with other trade partners to push back against the escalating trade war.
His Friday meeting with Spain’s Sanchez comes ahead of a multi-nation tour next week of Southeast Asia – a region heavily targeted by Trump’s “reciprocal” tariffs before they were put on pause. Xi will visit Vietnam, Malaysia and Cambodia in his first foreign trip this year, according to China’s Foreign Ministry.
Chinese leader Xi Jinping speaks during a meeting with Spanish Prime Minister Pedro Sanchez at Diaoyutai Guest House in Beijing on April 11, 2025.
Andres Martinez Casares/Pool/AFP/Getty Images
Though such high-level meetings typically take weeks or even months to plan, the timing of the announcements – just days after the two economic superpowers imposed record-high tariffs on each other – underscores Xi’s message that China is not backing down.
The Chinese leader is seeking to capitalize on the turmoil sparked by Trump’s tariff whiplash to deepen ties with nations from Asia to Europe, casting China as a reliable partner and defender of global trade.
Sanchez, who is on his third visit to China in two years, is likely the first in a flurry of European leaders heading to Beijing amid the global economic uncertainty unleashed by Trump.
During their meeting, Xi told Sanchez that the world is undergoing accelerated changes unseen in a century.
“The more complex and volatile the international landscape becomes, the more important it is to maintain sound and stable relations between China and Spain,” Xi said, vowing to work together in areas such as new energy, high-tech manufacturing and smart cities.
The Chinese leader also extended an olive branch to the European Union, calling it “an important pole in a multipolar world” and stressed that China has always “clearly supported” the group.
In a thinly-veiled jab at the US, Xi also called for China and the EU – which together account for more than one third of the world economy – to work together to defend international rules and order.
“China and the EU should fulfill their international responsibilities, jointly uphold the trend of economic globalization and the global trade environment, and work together to oppose unilateral bullying,” Xi said, using a phrase that Beijing often used to criticize US tariffs.
‘Shared future’ with neighbors
Strengthening strategic ties with its neighbors is high on China’s diplomatic agenda.
Vietnam and Cambodia were among the countries hardest hit by Trump’s “reciprocal” tariffs – set at 46% and 49% respectively before the pause. Both countries have seen a surge in investment from Chinese and international businesses in recent years as they move supply chains out of China to take advantage of lower labor costs and hedge against US levies.
This week, Xi
called for China to build a “shared future with neighboring countries,” while speaking at a high-profile Communist Party work conference on peripheral diplomacy.
An official statement from the two-day meeting called for China to “strengthen cooperation on industrial and supply chains” with nearby Asian nations.
China’s relations with its neighbors were “at their best since modern times, while also entering a critical phase in which regional dynamics and global changes are becoming deeply interconnected,” said the statement.
Beijing’s relationships with countries in Europe and Asia have been increasingly tested in recent years, with Western-aligned nations following the US as it looked to limit China’s access to semiconductor technology, for example. Beijing’s close relations with Moscow have strained those ties further.
But since Trump’s re-election, China has been eager to mend ties. In recent weeks, Chinese officials have talked to counterparts from South Korea, Japan and European countries in a bid to expand trade cooperation – and one up the US by winning over American allies and partners exasperated by the on-again-off-again trade war.
China’s trade partners are likely to regard Beijing’s overtures with skepticism.
Many of those nations are wary of being flooded with cheap Chinese goods. Beijing is also well known to have wielded access to its massive market as a weapon to coerce countries, often over political stances that sparked Beijing’s ire.
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