**Xi Jinping Escalates Trade War with the U.S. Amid Economic Pressures**

Thu Aug 21 2025 17:25:52 GMT+0300 (Eastern European Summer Time)
**Xi Jinping Escalates Trade War with the U.S. Amid Economic Pressures**

As tensions rise with America, Xi Jinping must convince the Chinese populace that sacrifices in the trade war are justified.


In a game of trade brinkmanship, Xi’s decision to increase tariffs jeopardizes China’s economy while he tries to maintain a strong front.

April 11, 2025 – In the ever-escalating trade confrontation between the U.S. and China, President Xi Jinping finds himself at a critical juncture. For weeks, both Xi and President Trump have engaged in a high-stakes contest, where neither seems willing to concede ground in a trade war that is testing their leadership amid global economic pressures.

President Trump initiated his plan for a comprehensive overhaul of international trade mechanisms by imposing tariffs, yet he showed hesitation by retracting some measures shortly after they took effect—maintaining only those against China. In contrast, Xi is notorious for his steadfastness. He has previously upheld strict COVID-19 policies even when their effectiveness waned and continued ambitious initiatives such as positioning China as a leader in renewable energy technologies.

This week, Xi's government announced a notable increase in tariffs on U.S. imports, rising to an unprecedented 125%. This move may exacerbate the challenges already facing the Chinese economy, which is grappling with sluggish growth. In a public demonstration of confidence, Xi declared, “There will be no winners in a tariff war,” emphasizing China’s long-standing reliance on self-sufficiency and resilience against external pressures.

Hosting Spain’s Prime Minister Pedro Sanchez, Xi refrained from directly addressing Trump or the U.S., instead underscoring his belief in China’s ability to navigate turbulent waters without yielding to what he termed “unreasonable suppression.” As this trade dispute unfolds, the international community watches closely—both nations are navigating uncharted territory, where the stakes extend far beyond tariffs alone.

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