President Donald Trump offered no additional details about the levies, but he said they would take effect Jan. 1 — leaving time for the two sides to resume negotiations.

The treasury secretary said Trump is contacting other world leaders to demand their support for the “economic asphyxiation” of the Iranian regime but he declined to say which countries and gave no deadline for action.

“It’s a big setback,” one analyst said, noting that other countries unhappy with the president’s trade deals are probably watching closely.

The levies, set to take effect at 12:01 a.m. Wednesday, are the latest exchange in a dispute that has disrupted the once harmonious relationship over the past year.

A new White House report says that China sends billions of dollars worth of goods to the U.S. via third countries in order to skirt Trump's high tariffs.