Chinese leader Xi Jinping broke his silence on the escalating trade war with the U.S., saying China is “not afraid” and will stand firm against U.S. “bullying.”

This follows Beijing’s latest move to raise tariffs on U.S. goods to 125%, in response to Trump increasing tariffs on China to 145%.

Xi emphasized self-reliance and warned that trade wars have no winners.

Despite refusing further tariff escalation, China hinted at other countermeasures, including curbing U.S. imports and cooperation, CNN has reported.

Trump said he’s comfortable with the current tariffs and praised Xi, while tensions between the two nations continue to threaten global markets.

Written by B.C. Begley