Trump's Iran Tariff Threat Risks Reopening China Trade Rift

• Donald Trump's proposed 25% tariff on countries trading with Iran could reignite trade tensions with China.
• This new tariff would push levies on Chinese shipments to the U.S. above 70%, surpassing previous trade war peaks.
• During Trump's first term, Iran was a major flashpoint, leading to sanctions on Huawei for alleged technology sales to Iran.
• Despite political closeness, China's commercial ties with Iran have significantly reduced, with official imports dropping from $21 billion in 2018 to $2.9 billion in 2023.
• Analysts suggest Trump's threat is a bluff, but if implemented, it could challenge Xi Jinping's global image and China's Belt and Road Initiative.

Why It Matters: Trump's Iran tariff threat could escalate U.S.-China trade tensions, despite reduced official Chinese trade with Iran.