Trump’s tariff threat could reopen rift with China

US President Donald Trump’s threat to slap a 25 per cent tariff on countries that trade with Iran risks reopening old wounds with Beijing, Tehran’s biggest trading partner.

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Iran became a flashpoint in US-China ties during Mr Trump’s first term as president from 2017 to 2021, as Washington tightened sanctions on Tehran and put China’s Huawei, accused of selling technology to the Islamic republic, in its cross hairs.

The arrest of Ms Meng Wanzhou, the daughter of Huawei’s founder, in Canada at Washington’s request sparked retaliation and a hostage crisis, with bitter recriminations lingering for the remainder of Mr Trump’s first administration.

With Iran in his sights once again, the duty would see Chinese shipments to the US incurring levies exceeding 70 per cent, higher than the effective 57.5 per cent tariffs in place before Mr Trump and Chinese President Xi Jinping struck a deal in October 2025 to deescalate their trade war.

It remains unclear which countries with Iranian business links Mr Trump might target, and he has not named China. The US President has also made offhand remarks that threatened to upend US foreign policy without acting on them before.