US, China to Clash Anew Over 25% Tariff Slapped on Iran’s Trading Partners

Donald Trump’s announcement of a 25% levy on any country doing business with Iran opens the prospect of a new round of tariff escalation between the United States and China, one of the biggest buyers of already sanctioned Iranian oil, Tom Bateman reported for BBC News.

China is Iran’s largest trading partner.

Trump is continuing to weigh the option of military strikes on Iran, having said its deadly crackdown on protesters was “starting to” cross his red line. The White House has signaled that no final decision has been made and pointed to channels of communication remaining open.

The tariff is “effective immediately,” the president posted on his social media platform Truth Social, adding: “This order is final and conclusive.”

Iran is already under severe US sanctions, facing a collapsing currency and inflation that has pushed food prices up by as much as 70%.

Food makes up about one-third of Iran’s imports, and further restrictions caused by the tariffs could worsen shortages and drive up costs. China is Iran’s largest trading partner, followed by Iraq, the United Arab Emirates, Turkey, and India.