Trump's Iran tariff threat tests China trade truce

President Trump threatened a 25% tariff on countries trading with Iran, and China’s embassy said Beijing opposes unilateral sanctions; the effect on the recent U.S.-China trade truce is undetermined.

President Donald Trump has threatened to impose an additional 25 per cent tariff on countries that do business with Iran. The comment comes as unrest in Iran has drawn international attention to the country’s trade links. China is Iran’s largest trading partner, and the threatened tariffs touch on the fragile trade truce agreed between Mr. Trump and Chinese leader Xi Jinping late last year. Beijing has publicly objected to unilateral sanctions and emphasized its opposition to coercive measures. Known details: - Mr. Trump threatened to impose a 25 per cent tariff on countries that continue trading with Iran. - A spokesman for China’s embassy in Washington said Beijing opposes unilateral sanctions and would take measures to safeguard its interests. - Officials say the tariff threat could strain the recent U.S.-China trade truce; how matters will proceed remains undetermined. Summary: The tariff threat raises uncertainty for countries that trade with Iran and places additional pressure on U.S.-China economic relations. Undetermined at this time.