The response mechanism of ecosystem respiration (Re) and soil respiration (Rs) to different water conditions is of great significance for understanding the carbon cycle under future changes in the precipitation patterns. We used seven precipitation treatments to investigate the effects of precipitation on Re and Rs on a typical alpine steppe in Northern Tibet. Precipitation was captured and relocated to simulate the precipitation rates of −25, −50, −75, 0 (CK), +25, +50, and +75%. The soil moisture was influenced by all the precipitation treatments. There was a positive linear relationship between the soil moisture and Re, Rs in the study area during the experiment (July–October). Soil volumetric water content (VWC), absolute water content (AWC), soil temperature (ST), aboveground biomass (AGB), bulk density, soil total nitrogen (TN), and alkaline hydrolysis nitrogen (AHN) were the predictors of Re and Rs. The multiple linear regression analysis showed that ST and AWC could explain 90.6% of Rs, and ST, AWC, and AHN could explain 89.4% of Re. Ecosystem respiration was more sensitive to the increased precipitation (+29.5%) whereas Rs was more sensitive to the decreased precipitation (−23.8%). An appropriate increase in water (+25 and +50%) could improve the Re and Rs, but a greater increase (+75%) would not have a significant effect; it could have an effect even lower than those of the first two. Our study highlights the importance of increased precipitation and the disadvantage of decreased precipitation on Re and Rs in an arid region. The precipitation changes will lead to significant changes in the soil properties and AGB, and affect Re and Rs, to change the climate of the alpine steppe in Northern Tibet in the future. These findings contribute to our understanding of the regional patterns of environmental C exchange and soil C flux under the climate change scenarios and highlight the importance of water availability to the regulating ecosystem processes in semi-arid steppe ecosystems. In view of these findings, we urge future researchers to focus on manipulating the precipitation over longer time scales, seasonality, and incorporating more environmental factors to improve our ability to predict and model Re and Rs and feedback from climate change.