Chinese President Xi Jinping has delivered a pointed critique of President Donald Trump’s escalating tariff campaign, urging the European Union (EU) to join China in defending globalisation and opposing “unilateral acts of bullying.” Xi made the comments during talks with Spanish Prime Minister Pedro Sánchez in Beijing, signaling China’s position in the ongoing trade war with the US.
As part of China’s retaliatory measures, Xi announced that China would raise tariffs on all US imports from 84% to 125%, marking a sharp escalation in the trade conflict. In response to this move, the US increased its tariffs on Chinese goods to over 145%. Xi also issued a veiled warning against the US, stating, “There are no winners in a tariff war,” and stressed that such conflicts only lead to global economic harm. He cautioned that “going against the world will isolate oneself.”
During the meeting with Sánchez, Xi described the EU as a crucial partner in a multipolar world, emphasizing the need for closer coordination to stabilize global trade. He called for China and the EU to jointly resist unilateral actions and to protect international rules and fairness in trade.
Xi’s comments echoed his previous rhetoric against tariff wars, signaling a firm stance against President Trump’s economic policies. Sánchez, in turn, reiterated concerns over the EU-China trade deficit and the importance of negotiations to resolve differences, highlighting the $300 billion trade deficit between the EU and China. He also urged both the US and China to resume dialogue to avoid further escalation.
The trade dispute has had significant global financial consequences, with Asian stock markets plunging, and oil prices also taking a hit. The US S&P 500 index has dropped by 3.5% in response to the heightened tensions, now down about 15% from its record high in February.
While Trump announced a 90-day pause on tariffs for certain countries—including the EU—the pause has left many businesses uncertain about the future. French President Macron also commented on the fragile nature of this pause, noting that the uncertainty surrounding tariffs continues to loom over businesses globally. Despite these temporary reprieves, Trump excluded China from the suspension, continuing to impose punitive tariffs on Chinese imports in retaliation for Beijing’s initial countermeasures.
As the trade conflict continues to intensify, Xi’s call for cooperation with the EU signals China’s broader efforts to stabilize international trade and ensure that the global system remains open and fair despite rising protectionism from the US.
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