On April 8th, President Trump stated on “Truth Social” that countries providing weapons to Iran will face a 50% tariff increase. Reports indicate that the Chinese Communist Party (CCP) has been assisting Iran in developing its military equipment.
Before this announcement, the US and Iran had just declared a two-week ceasefire agreement. Market trading data showed a significant drop in US crude oil prices, the largest single-day decline since 2020. However, some energy analysts believe that the uncertainty surrounding Iran’s accusations against the US for violating the ceasefire agreement may impact energy supply expectations and alter the landscape of world trade.
Trump’s tariff increase could affect countries with significant trade relations with the US, including China. A report submitted to Congress on November 14, 2025, by the US-China Economic and Security Review Commission (USCC) pointed out that the CCP government has been supplying missile-related components to Iran through some dual-use technology trades and Chinese companies.
A report by the Washington-based think tank, the Atlantic Council, revealed that the CCP has been providing missiles, drones, and related components to Iran to facilitate the development of its defense equipment.
According to vessel tracking information from the maritime data company Marine Traffic, in early March, ships related to Iran departed from Chinese ports. Researchers suggest that this could involve sensitive material transportation from China to Iran, potentially including precursor materials for rocket fuel.
China and Iran have maintained close relations, formally establishing a comprehensive strategic partnership in 2016. China has been Iran’s largest trading partner for several years, with around 90% of Iran’s crude oil being transported to China. The two countries signed a 25-year comprehensive cooperation agreement in 2021, fostering close collaboration in trade, energy, and infrastructure fields. Iran also serves as a crucial Middle East node in China’s Belt and Road Initiative (BRI).
In recent years, China-Iran cooperation has shifted towards the sale of dual-use technology and the transfer of defense-related technologies, including those related to missile and drone development. Chinese-made components have been found in Iranian drones, such as sensors, voltage converters, and semiconductors in the “Shahed-136” drone.
Although Russia also supplies military equipment to Iran, the potential impact of US tariffs on Russia is much smaller. In 2025, the total value of goods imported from Russia to the US was only $3.8 billion, while imports from China reached $308 billion.
China may face new trade pressures due to potential tariffs. Despite the existing trade tensions, the US remains an important trading partner for China, providing a significant source of everyday consumer goods, including smartphones, toys, clothing, and computers. Since the US-China trade war began in 2018, the US has maintained high tariff rates on most Chinese products.
Data from the Peterson Institute for International Economics (PIIE) as of the end of 2025 showed that the average tariff rate imposed by the US on Chinese imported goods was 47.5%, covering 100% of Chinese goods entering the US.
According to previous information released by the White House, President Trump is expected to visit Beijing next month to meet with Chinese Communist Party leader Xi Jinping, with trade and tariff issues on the agenda.