Tariff threat rattles markets
President Trump warned he could impose a 50% tariff on China if Beijing is found supplying weapons to Iran, a threat that pushed Chinese equities lower on April 13. Failed US‑Iran talks and the same tensions lifted oil above $100 a barrel and weighed on markets elsewhere. (cnbc.com) (livemint.com) (abc.net.au)
President Donald Trump said on April 13 he could hit China with a 50 percent tariff if Beijing is found supplying weapons to Iran, and Chinese stocks fell. (cnbc.com) The warning followed a report that China was preparing to send Iran a shipment of air-defense systems, which are weapons designed to shoot down aircraft and missiles. Trump said he had seen reports about China providing “shoulder missiles,” and CNBC reported the White House threat on Sunday, April 13. (cnbc.com) In mainland trading on Monday, April 13, the Shanghai Composite slipped more than 0.39 percent to about 3,971, according to Mint. Chinese equities were also pressured by the tariff threat as investors weighed the risk of a fresh United States-China trade clash. (livemint.com) Markets were already under strain after United States-Iran talks broke down and Trump threatened a naval blockade of the Strait of Hormuz, the narrow waterway that carries a large share of the world’s seaborne oil. ABC reported Brent crude moved back above 100 United States dollars a barrel as those tensions deepened on April 13. (abc.net.au) That link between oil and stocks showed up across Asia-Pacific trading. ABC said the Australian Securities Exchange fell as energy prices jumped, extending a pattern in which higher crude prices have unsettled equity markets through April. (abc.net.au) Trump had already laid out the tariff threat in broader terms on April 8, saying the United States would impose 50 percent tariffs on “any and all” goods from countries supplying military weapons to Iran. China became the immediate market focus after the new report about a possible shipment. (cnbc.com) The threat also landed against a recent history of tariff escalation with Beijing. CNBC reported on April 8, 2025, that China said it would “fight to the end” after Trump threatened an additional 50 percent duty tied to an earlier trade dispute. (cnbc.com) Beijing had not, in the cited reports, publicly accepted the allegation that it was preparing an arms shipment to Iran. For traders on April 13, the immediate facts were the threat itself, falling Chinese shares, and oil back above 100 United States dollars a barrel. (cnbc.com)
