Big Take Asia Punishing Iran Could Alienate China and India — Again
19 snips
Jan 13, 2026 
Daniel Ten Kate, Bloomberg's executive editor of government and economics in Asia, delves into the repercussions of Trump's tariff threat on Iran, particularly for China and India. He discusses the vague legal framework surrounding these tariffs and their potential to disrupt the fragile US trade relationships. Ten Kate highlights Asia's dependency on Iranian oil and how this could solidify China's image as a reliable partner in the midst of U.S. coercion. Ultimately, he predicts that both Xi and Modi will prioritize economic stability while navigating these geopolitical tensions.
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Vague Tariff Threats Create Big Uncertainty
- Trump's 25% tariff threat targets countries doing business with Iran and is deliberately vague about scope and implementation.
- That vagueness creates uncertainty for major partners like China and India and could blow up recent trade truces.
Tariffs Are Politically Risky Domestic Tools
- Tariffs are President Trump's go-to economic weapon but risk raising US consumer costs ahead of midterms.
- Legal challenges and pending Supreme Court rulings also complicate the durability of such tariff actions.
Legal Basis Determines Tariff Longevity
- The legality of broad tariff actions depends on whether they're framed as an emergency or follow formal trade investigations.
- Trump may push measures then let court battles play out, prolonging uncertainty for trade partners.