Trump's Iran Policy: China Targeted, Pakistan Caught in the Middle, Billions at Stake

Economy
C
CNBC Awaaz•14-01-2026, 17:39
Trump's Iran Policy: China Targeted, Pakistan Caught in the Middle, Billions at Stake
- •US President Trump supports Iranian protestors, aiming for regime change without military intervention, and has announced a 25% tariff on trade with Iran.
- •China, Iran's largest trading partner, faces a 25% tariff on its US exports if it continues to buy Iranian oil, potentially losing billions and jeopardizing its Belt and Road Initiative.
- •China's $400 billion investment in Iran over 25 years, including the Caucasus–Iran–Pakistan Oil Pipeline, is at risk if Iran falls under US influence.
- •Pakistan, with $3 billion annual trade with Iran, faces a 25% tariff on its US exports if it continues trade, severely impacting its fragile economy.
- •Pakistan is in a dilemma: reducing trade with Iran means losing cheap energy and regional connectivity, while continuing trade risks US tariffs and choosing between US and China.
Why It Matters: Trump's Iran policy targets China's energy security and trade routes, while leaving Pakistan in a difficult economic and geopolitical bind.
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