Xi Warns of U.S. Isolation in Tariff War, But Global Trade Talks Tell a Different Story

Xi Warns of U.S. Isolation in Tariff War, But Global Trade Talks Tell a Different Story

Beijing — Chinese President Xi Jinping cautioned Monday that the United States risks boxing itself into a corner with its escalating tariff policies, predicting that a trade war would leave no winners and could isolate America on the world stage. Speaking during a visit from Spanish Prime Minister Pedro Sánchez, Xi called the U.S. approach a dangerous misstep, one that could fracture global economic ties. But as China digs in against President Donald Trump’s aggressive trade moves, a wave of dealmaking with other major nations suggests Xi’s warnings are missing the mark—and that Trump’s high-stakes strategy is paying off.

“There are no winners in trade wars,” Xi said at the Great Hall of the People, his voice steady but pointed. “Confrontation with the entire world will ultimately lead to the U.S.’s own isolation.” His comments come as Trump has slapped 145% tariffs on Chinese imports, a sharp escalation from earlier duties, while offering olive branches to other trading partners. China has hit back hard, imposing 125% tariffs on American goods, setting the stage for a bruising economic standoff. Xi framed the U.S. as a reckless actor, arguing that tariffs threaten supply chains and global growth, with pain felt from factory floors to checkout counters.

Yet the view from Washington—and much of the world—tells a different story entirely. Far from standing alone, the U.S. is at the center of a global scramble to negotiate trade deals. Since Trump announced the latest tariffs and his willingness to deal, more than 75 countries have reached out to the White House, according to administration officials. Japan, South Korea, and the European Union are among those signaling openness to talks, within hours of tariff threats. On April 9, Trump paused “reciprocal” tariffs for 90 days, dropping them to a flat 10% for most partners—a move that sparked a frenzy of diplomatic outreach. Vietnam has floated zero-tariff access for U.S. goods, while EU Commission President Ursula von der Leyen has pushed for a “negotiated resolution.” Even Canada and Mexico, caught in the tariff crosshairs, are inching toward agreements. Everyone, except China, is realizing that the days of America being a pushover is at an end and it's time to once again get serious.

The flurry of activity undercuts Xi’s narrative of U.S. isolation and illustrates the effectiveness of Trump’s playbook: wield tariffs like a club, then ease up to coax concessions. “This was always the plan,” Treasury Secretary Scott Bessent told reporters Tuesday, describing China as the odd one out for their petulance. The stock market seems to agree—on the day of the tariff pause, the S&P 500 soared 9.5%, its biggest single-day jump since 2008. For Trump, the tariffs are as much about politics as economics, rallying voters who see trade imbalances—especially with China—as a decades-long betrayal of American workers. His promise to use tariff revenue for tax cuts has kept his base energized. Even as economists warn of rising prices, anyone with a basic understanding of economics knows that more traffic in the markets is a sure sign of stabilization.

China, meanwhile, is doubling down. Beijing’s retaliatory tariffs and Xi’s vow to “fight to the end” reflect a belief that China can weather the storm, leaning on its domestic market and Asian allies, though it appears that China may be the ones finding themselves standing alone. Next week, Xi heads to Vietnam and Malaysia to shore up regional ties, but those same countries are quietly hedging, opening talks with the U.S. to dodge tariffs. China’s $295.4 billion trade surplus with the U.S. last year—far larger than what it buys from America—means its own tariffs bite harder. Add to that domestic woes like a shaky property market, and Xi’s hardline stance looks riskier by the day. Meanwhile, U.S. companies like Apple are shifting production to places like India, loosening China’s grip on global manufacturing.

Xi’s warnings aren’t without weight. A drawn-out U.S.-China trade war could drag both economies down, with global fallout. Inflation is already squeezing American wallets, and China could flood markets with cheap goods, rattling other nations. But the idea of U.S. isolation feels off-base when everyone from Tokyo to Brussels is knocking on Washington’s door. Trump’s approach—part saber rattling, part dealmaking—has turned the U.S. into the hub of global trade talks, while China stands increasingly alone. If anyone’s misreading the room, it might just be Xi.

China's history of unfair trade practices and Intellectual Property theft is wearing thin with the rest of the world. This may just be the opportunity many nations needed to back away from being forced into economic servitude by their need of trade and instead enjoy the open market trade with the rest of the world through the United States. For the time being, it looks like Xi may be the one finding himself alone if he doesn't start paying attention.