As China Hits Back with 125% Tariffs on US, Xi Invites EU to Team Up Against Trump’s ‘Bullying’
In a dramatic turn in the trade war between China and the US, China has imposed tariffs of up to 125% on all imports from the US, a step which not only marks a heightening of the present economic standoff but also a possibility that Beijing might be ending the current phase of retaliation. Only hours later, Chinese President Xi Jinping reached out to the European Union, urging solidarity in standing against what he termed “unilateral acts of bullying”—a veiled criticism of U.S. President Donald Trump and his belligerent trade practices.
The temporal coordination of this two-fold move—increasing tariffs and calling upon EU solidarity—indicates that China is remapping its trade policy, perhaps from tit-for-tat strategy to the creation of wider international coalitions to balance the U.S. position.
Tariffs Reach 125%: A Bold Signal from Beijing
On Friday, China’s Ministry of Commerce said it would increase tariffs on all American imports, raising duties from the current 84% to 125%. This bold hike covers a broad array of U.S. products, ranging from agricultural commodities to machinery and equipment, and is evidently designed to exert pressure on U.S. exporters and the American economy as a whole.
While harsh, the language by the Chinese ministry implied that perhaps this was to be the last escalation in this round of tit-for-tat tariffs. The wording of the announcement implied China was drawing a line in the sand—advertising its firmness, while leaving the option open for conversation or negotiation.
This step isn’t just about economics; it’s also political in nature. It is an expression of Beijing’s exasperation at what it perceives as Washington’s overreach and protectionist tendencies during the Trump administration.
Xi’s Strategic Outreach to the EU
Hours after announcing the tariff increase, President Xi welcomed Spanish Prime Minister Pedro Sánchez to Beijing, taking the opportunity to shift the trade discussion toward multilateral collaboration. In the course of the discussions, Xi stressed the need to defend globalisation, champion fair trade, and counteract unilateralism.
China sees the EU as an important partner in a multipolar world,” Xi stated, saying both parties should “enhance coordination” to stabilize global trade. Without specifically mentioning the United States, Xi cautioned that “there are no winners in a tariff war.
Xi’s remarks clearly sought to draw a line between China’s strategy and that of the United States. While the U.S. has increasingly pursued isolationist and protectionist policies under Trump—pulling out of trade deals and imposing tariffs—China is attempting to cast itself as a champion of globalisation and multilateralism.
A Subtle but Strong Rebuke of Trump
Even if Xi did not specifically name Donald Trump, the denunciation of “unilateral acts of bullying” was surely directed at America’s president. Trump’s regime has habitually used coercive means—singularly slapping tariffs, threating trading partners, and nullifying long-held agreements—in order to get top dollar for America’s industries.
To China, though, these actions are not simply economic provocations but efforts to destabilize the rules-based international trading order. By framing Trump’s approach as “bullying,” Xi is appealing not only to economic pragmatists in the EU but also to nations disillusioned by America’s increasingly unpredictable global leadership.
Can China and the EU Forge a Trade Alliance?
The question now is whether Xi’s outreach to the European Union will translate into a more concrete trade alliance. The EU has its own tensions with the U.S., especially after Trump imposed tariffs on European steel and aluminum and repeatedly threatened tariffs on European cars. Relations between Washington and Brussels have been strained, and China may see an opportunity to widen that rift.
From a geopolitical perspective, a tighter China-EU relationship would radically shift global trade flows. If the two large economies align on policy, standards, and even countermeasures, it would become harder for the United States to adopt a divide-and-conquer approach. It might also form an influential counterweight to American clout in international trade forums such as the World Trade Organization (WTO).
Nevertheless, there are obstacles. The EU also has its own issues with China’s trade practices, such as intellectual property rights, state subsidies, and market access. Although the two parties may have common interests in pushing back against U.S. protectionism, forging a true alliance would mean bridging fundamental differences.
Global Implications of a Three-Way Trade Tug-of-War
The developing drama between the United States, China, and the European Union is more than merely a series of trade disputes. It’s a manifestation of changing global order, where alliances are transient, power is diffuse, and economic nationalism gains traction.
If the U.S. persists in isolating itself with tariffs and “America First” attitudes, and China manages to ally itself with crucial players such as the EU, we could see a new economic axis form, one that sidelines the U.S. or drives it to tone down its own.
On the other side, the chance for escalation still lies high. In case the most recent tariffs from Beijing get further infuriating Washington, Trump has the leverage to retaliate with new taxes or even full-blown economic steps. Tit-for-tat like this will upend the global economy by hurting supply lines, investment flow, and global consumer prices.
Europe’s Delicate Balancing Act
For the EU, the situation is particularly delicate. Aligning too closely with China could draw ire from the United States, a long-time ally and major trading partner. Yet refusing Xi’s invitation may also mean missing an opportunity to shape a new, more balanced global trade framework.
Brussels will probably stick with its “strategic autonomy” policy—collaborating with China where the interests overlap, but resisting where it comes to matters such as human rights and market openness. But as tensions rise over trade, the EU might be driven to take sharper positions on sensitive issues.
A New Chapter in Global Trade Rivalry
China’s announcement to hike tariffs on U.S. imports to 125% is a turning point in the global trade war. It is not merely a counterpunch but a deliberate action—a move apparently designed to project strength while refocusing from aggressive posturing towards coalition-building.
President Xi’s call for the EU to unite against “unilateral bullying” underscores Beijing’s desire to reshape the global narrative. While the Trump administration continues to push hardball trade tactics, China is now presenting itself as a voice of stability and cooperation.
Whether this strategy will succeed depends on how other global powers respond. The EU must navigate complex relationships with both the U.S. and China, while other nations watch closely to see which model—Trump’s nationalism or Xi’s globalism—proves more sustainable.
One thing is clear: the trade war is now in a new phase, one that goes beyond tariffs and is now one of global leadership, ideological positioning, and the future of international order
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