Trump’s 25% Iran Tariff May Trigger China Retaliation
Trump's 25 % tariff on Iran trading partners could trigger China to retaliate, jeopardising the U.S.–China trade truce.
On 13 January 2026, U.S. President Donald Trump announced a 25 % tariff on any country trading with Iran, aiming to punish the Islamic Republic but risking a fallout with China. The tariff would raise China’s average U.S. import duty from roughly 47 % – the level reached after the November 2025 truce between Trump and President Xi Jinping – to over 70 %, threatening Chinese supply chains and broad economic ties. Analysts estimate Beijing imports 80‑90 % of Iran’s oil, making it the most exposed partner yet still seeking an exemption. Trump plans a Beijing visit in April 2026, adding political pressure on China to negotiate relief. If China refuses, a retaliatory tariff could dwarf the existing 25 %, potentially destabilising global trade.
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