On Monday, the Trump administration announced plans to impose the toughest economic sanctions on Iran. The move would target China, Iran’s main trading partner, potentially provoking a strong Chinese response.

The "Economic D-Day"

The Trump administration will introduce new sanctions at a news conference at 17:00 GMT, aiming to sever all economic lifelines sustaining Iran. In an op‑ed in the Financial Times, Treasury Secretary Scott Bessent warned: "Countries fearful of breaking ties with Iran should not discount the cost of testing Washington."

China in the Spotlight

China had two‑way trade of $9.96 bn with Iran in 2025, plus $31.2 bn in Iranian oil shipments, according to the US‑China Economic and Security Review Commission. The US Treasury reports that about 90 % of Iran’s oil sales go to China. Targeting China would therefore impose a massive economic blow to Tehran.

Past Experience

Previous US sanctions only hit a handful of small Chinese entities. In April, Hengli Petrochemical (Dalian) Refinery and, later, four Hong Kong firms and six China‑based shipping lines were sanctioned. Chinese financial institutions, key nodes in Iran’s oil trade, have remained untouched.

Reactions from China and Iran

China’s Ministry of Foreign Affairs said it remains "committed to promoting peace talks" and criticized US sanctions. Iran’s Supreme National Security Council warned that any country participating in sanctions would be deemed an enemy and that "not a drop" of oil would leave the Gulf if Iran’s neighbours joined the US campaign.

Impact on US‑China Relations

Broad US sanctions could directly jeopardize US‑China ties. Trump is scheduled to meet President Xi Jinping on September 24. If the sanctions are wide‑ranging, the summit could be significantly affected.

Critique of Economic Policy

Sanctions expert Brett Erickson warned that "if the US does not target China, it signals that the administration believes economic pressure cannot change Iran’s position." He added that while sanctions can force companies to de‑risk, there will always be entities willing to step in.

Final Details

Treasury Secretary Scott Bessent announced on Monday at 17:00 GMT that the new sanctions would target Chinese oil and financial firms. If enacted, this move could directly disrupt China‑Iran trade and trigger severe economic retaliation from Beijing.