Trump Targets China in 'Economic D-Day' Threat Against Iran

The Trump administration is threatening to sever 'every' economic lifeline sustaining Iran in what officials have warned will be the toughest sanctions campaign ever seen.

This would mean putting China, Iran's biggest trade partner, squarely in the crosshairs of US sanctions. The US Treasury Secretary Scott Bessent warned that countries fearful of breaking ties with Iran should not 'discount the cost of testing Washington'.

Brett Erickson, a sanctions expert and managing principal of Obsidian Risk Advisors, said the Trump administration's willingness to target China will be an indication of its resolve to mount a sustained economic offensive against Tehran. He also noted that any US pressure campaign that excludes China would be limited in scope given the outsized importance of Beijing and Tehran's economic ties.

China reported $9.96bn in two-way trade with Iran in 2025, including some $31.2bn in Iranian oil shipments, according to the US-China Economic and Security Review Commission. The Trump administration has so far left Chinese financial institutions untouched, but has targeted a handful of relatively minor China-based entities.