Chinese stocks ended Tuesday's session mixed as investors weighed renewed U.S.-China trade tensions and Washington's expanding sanctions campaign against Iran.

The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.2% higher to 3,889.44. The Shenzhen Component Index declined 0.4% to 13,745.87.

Chinese equities came under pressure amid geopolitical and trade uncertainty.

The U.S. is considering a 7.5% tariff on Chinese goods over concerns about excess manufacturing capacity, potentially lifting U.S. President Trump's second-term tariffs on China to around 20%, Business Today reported. The move comes ahead of a planned Trump-Xi summit next month.

Meanwhile, Treasury Secretary Scott Bessent launched "Operation Economic Outcast" to tighten economic pressure on Iran, including sanctions on Chinese companies and banks involved in Iran-linked deals.

In company news, GK Pretech (SHA:688835) on Tuesday closed at 235.00 yuan per share on its first day of trading on the Shanghai bourse. This marked a 283% jump from the technology company's initial public offering price of 61.36 yuan.