Trump hints at sanctions on Chinese banks over Iran ties before Xi’s expected US visit

Latest salvo from US president adds pressure to already fragile US-China ties before expected bilateral summit in Washington

US President Donald Trump on Thursday hinted at sanctioning Chinese banks over their commercial links with Iran, just weeks before Chinese leader Xi Jinping is expected to visit Washington for a bilateral summit.

“Who said I’m not?” Trump said in response to a reporter’s question about why the US had not sanctioned Chinese banks for their dealings with Iranian entities.

“Let me be clear: any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. The clock just started ticking,” Bessent said at a press conference on Monday. The administration dubbed the new actions “Economic D-Day”.

The measures were part of the administration’s attempt to put further economic pressure on Tehran after military strikes and diplomatic negotiations failed to reopen the Strait of Hormuz or bring the six-month conflict to an end.