Why Trump may have to target China to make its Iran 'economic D-Day' work

The U.S. administration's plan to economically strangle Iran may involve targeting China, despite a recent trade peace between the two countries. U.S. Treasury Secretary Steven Bessent hinted at a possible "economic D-Day" against Iran, raising concerns about a potential clash with China, its largest trading partner. China buys around 90% of Iran's oil exports, which means U.S. secondary sanctions against any country aiding Iran's trade could potentially impact China.

However, China has previously rejected unilateral U.S. sanctions as illegitimate, and has allowed private companies to find ways around the restrictions while retaining access to the U.S. financial system. Bessent emphasized that all entities and individuals continuing to deal with Iran could face secondary sanctions, but stopped short of naming China specifically.

Experts suggest that targeting Chinese companies could trigger retaliation and strain U.S.-China relations, especially as they prepare for a summit in September. Additionally, such actions could disrupt global markets and supply chains, exacerbating the economic fallout from the ongoing war in Iran.