By Eric Vandenbroeck and co-workers

Rather than a fight on all fronts against the world, this now looks far more like a fight on familiar Trumpian territory: America vs. China.

China on Friday called on the European Union to join hands to resist "unilateral bullying" by the United States, referring to the 145 per cent tariffs imposed by President Donald Trump on imported Chinese goods and the 20 per cent tax (suspended for 90 days after the EU retaliated) on goods from the bloc.

Chinese President Xi Jinping on Friday urged the European Union to join Beijing in resisting “unilateral bullying", state media Xinhua reported.

Donald Trump has ratcheted up a trade war with China after he hiked the tariff on Chinese imports to 145%.

Since taking office in January, Trump has now raised the tariff on Chinese goods five times.

The first two hikes of 10% each were met with what analysts described as a measured response from China that left the door open for talks. But after Trump announced an additional 34% duty on Chinese goods last week, along with tariffs on other countries in his “Liberation Day”, China matched that with a 34% tariff on imports from the US.

Following China's retaliations, Trump then added a 50% tariff on goods from China, saying negotiations were terminated, and bringing the cumulative US. tariffs to 104%.

China again responded by raising the tariff on American products by the same amount, bringing its total rate to 84%. Then Trump upped the American tariff to 125%.

Later, the White House clarified that the tariffs on China also include a 20% levy put into place earlier this year over Beijing’s alleged role in fentanyl trafficking.

China also said it is ready to fight a trade war if the US continues to act "recklessly".

The appeal to the EU - which follows calls for India and China to work together  - was made by President Xi Jinping as he met Spain Prime Minister Pedro Sanchez in Beijing.  Xi warned the Spanish leader that the EU and China need to cooperate to ride out the looming trade war with the US.

"China and Europe should fulfil their international responsibilities... and jointly resist unilateral bullying practices," the Chinese President said, echoing remarks from earlier and stressing this would not only "safeguard legitimate rights and interests... but also safeguard international fairness and justice."

The Spanish Prime Minister - whose nation buys about $50 billion of goods from China every year - said tensions over trade should not impede the EU's cooperation with Beijing.

 

"No Winners..." China's Warning

In a separate statement - underlining Beijing's increasingly aggressive stance towards Trump's tariffs - Chinese Foreign Ministry spokesperson Lin Jian said, "trade wars have no winners".

Already, Beijing is targeting Hollywood, Apple is airlifting iPhones, and some prices are set to rise on Amazon.  Trump acknowledged Thursday there could be "transition problems" but said the result would be positive for U.S. jobs and tackling the country's debt.  His turnabout, less than 24 hours after the tariffs kicked in, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.

Underneath, speaking to Spanish Prime Minister Pedro Sanchez in Beijing on Friday before the announcement of the new levies, Xi said: “There are no winners in a trade war, and going against the world will only lead to self-isolation.”

 

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.

This came despite Trump announcing he was pausing most of his tariffs on U.S. trade partners for 90 days.

"There are no winners in a trade war, and going against the world will only lead to self-isolation," Xi said on Friday, according to 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 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.

 

 

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