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Media: Iran, Russia, and China agreement hinders oil trade with the US

04 August 2025 09:44 (UTC +04:00)

U.S. and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the U.S. demand that China stop purchasing oil from Iran and Russia, APA reports citing AP news.

“China will always ensure its energy supply in ways that serve our national interests,” China’s Foreign Ministry posted on X on Wednesday following two days of trade negotiations in Stockholm, responding to the U.S. threat of a 100% tariff.

“Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests,” the ministry said.

The response is notable at a time when both Beijing and Washington are signaling optimism and goodwill about reaching a deal to keep commercial ties between the world’s two largest economies stable — after climbing down from sky-high tariffs and harsh trade restrictions. It underscores China’s confidence in playing hardball when dealing with the Trump administration, especially when trade is linked to its energy and foreign policies.

U.S. Treasury Secretary Scott Bessent, emerging from the talks, told reporters that when it comes to Russian oil purchases, the “Chinese take their sovereignty very seriously.”

“We don’t want to impede on their sovereignty, so they would like to pay a 100% tariff,” Bessent said.

On Thursday, he called the Chinese “tough” negotiators, but said China’s pushback hasn’t stalled the negotiations. “I believe that we have the makings of a deal,” Bessent told CNBC.

Gabriel Wildau, managing director of the consultancy Teneo, said he doubts President Donald Trump would actually deploy the 100% tariff. “Realizing those threats would derail all the recent progress and probably kill any chance” for Trump and Chinese President Xi Jinping to announce a trade deal if they should meet this fall, Wildau said.

In seeking to restrict oil sales by Russia and Iran, a major source of revenue for both countries, the U.S. wants to reduce the funding available for their militaries, as Moscow pursues its war against Ukraine and Tehran funds militant groups across the Middle East.