Trump Could Add 25 Percent Tariff on Chinese Goods to Get Leverage on Iran

January 13 ------ President Donald Trump announced that the White House will impose a 25 percent tariff on all countries that transact with the Islamic Republic of Iran. China is Iran's biggest trading partner by a wide margin, and if the administration follows through in full, Trump's announcement would require a new 25 percent tariff on all Chinese goods - across the board.

"Effective immediately, any country doing business with the Islamic Republic of Iran will pay a tariff of 25 percent on any and all business being done with the United States of America. This order is final and conclusive," Trump wrote.

The announcement is aimed at pressuring Iran, but would affect U.S. trade with other nations, primarily China. China accounts for 30 percent of all Iranian trade, including at least 80 percent of Iran's oil exports. Turkey and the UAE are next on the list, responsible for less than 10 percent of Iran's trade each; both are U.S. allies.

A 25 percent tariff on China would once again squeeze profit margins on America's biggest international trade lane, affecting Chinese producers, American retailers and U.S. consumers. It would restart the transpacific trade war between Washington and Beijing, which resulted in serious supply shortages for U.S. defense companies the last time around. In October 2025, the White House backed down from trade measures on China when Beijing clamped down on exports of rare earth elements and magnets, threatening the ability of U.S. defense companies to produce advanced weapons. To win back access to these strategic Chinese minerals, the administration suspended a plan to charge port call fees to Chinese-built and Chinese-owned ships, thereby assuaging Beijing's concerns and restarting Chinese mineral sales to U.S. companies.

The president's ability to impose emergency tariffs is currently being litigated at the Supreme Court level, and the outcome of the case is uncertain. A ruling is expected on Wednesday. If the court rules that the president does not have broad powers to set import levies, a power reserved to Congress by the Constitution, Trump would still be able to use delegated powers to set tariffs on commodity categories - though not on specific nations of origin.

Source: maritime-executive.com