Chinese leader Xi Jinping has said his nation is “not afraid,” in his first public comment on the escalating trade war with the United States, as Beijing raised tariffs on US goods to 125%.

China raised its tariffs on all U.S. imports to 125% in response to an escalating trade war with President Donald Trump.

China invokes Ronald Reagan’s 1987 warning against trade wars to criticise Trump’s soaring tariffs, as the US-China economic conflict intensifies with tit-for-tat duties and heightened global tension.