US-China trade negotiations face a major hurdle: China's refusal to halt oil imports from Iran and Russia. Despite overall optimism for a trade deal, the US threatens a 100% tariff on Chinese goods if they don't comply. China firmly rejects this, citing national interests and sovereignty. While some doubt the US will enforce the tariff, China's stance highlights the complexities of linking trade with geopolitical issues, particularly given China's low-cost oil access and strategic alignment with Russia.

Prepared by Rachel Morgan and reviewed by editorial team.