Trump’s Latest Tariff Threat May Undermine U.S.-China Trade Truce

President Trump’s announcement on Monday of new tariffs on goods from countries trading with Iran risks derailing his one-year trade truce with China, the world’s top buyer of Iranian oil. “Any Country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America,” Trump posted on social media Monday and as reported by Bloomberg. The levy is “effective immediately,” he added, without elaborating on the scope or implementation of the charges. It’s unclear if Trump will stack the latest tariffs on top of existing rates or announce carve-outs for China, after his administration previously signaled higher fees could inflict domestic pain. If the U.S. doesn’t respect its deal with China, Beijing has the right to take “appropriate action,” said Zhou Mi, a senior researcher at a think tank affiliated with the Ministry of Commerce. Trump has said he was mulling potential options in response to reports of deadly crackdowns on Iranian demonstrators. China will protect its rights and interests, Foreign Ministry spokeswoman Mao Ning said Tuesday at a regular press briefing in Beijing, when asked about Trump’s tariff remarks. Earlier, China’s embassy in Washington slammed Trump’s threats as “coercion” in a statement to the South China Morning Post, vowing that Beijing would “take all necessary measures to safeguard its legitimate rights,” Bloomberg reported.
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