US President Donald Trump has announced a 25% tariff on trade conducted with the United States by any country doing business with Iran. The announcement, posted on Truth Social, declared the order "final and conclusive" and "effective immediately." This decision comes as Iran faces ongoing anti-government protests and amid previous statements from President Trump regarding military options and potential negotiations with Iranian officials.
Tariff Announcement and Details
On Truth Social, President Trump stated that "any country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America." He did not provide additional details beyond this statement. The White House has not yet released further information concerning which countries' imports would be most impacted, how the tariff would be implemented, or if it would be in addition to existing tariffs.
Context: Situation in Iran
The tariff announcement coincides with anti-government protests in Iran. These demonstrations began in late December, initially sparked by a decline in the value of the rial, and have escalated into a broader challenge to Supreme Leader Ayatollah Ali Khamenei. The US-based Human Rights Activist News Agency (HRANA) reported approximately 500 protester fatalities and 48 deaths among security personnel. Other sources suggest a potentially higher death toll and thousands of arrests. An internet blackout implemented since Thursday evening has made it difficult to verify information from inside Iran, preventing most international news organizations from reporting directly from the country. White House spokeswoman Karoline Leavitt has confirmed that military options, including air strikes, remain under consideration. President Trump had previously mentioned that Iranian officials had contacted him to negotiate.
Iran's Trade Partners and Profile
More than 100 countries engage in trade with Iran. Key partners include:
- China: Iran's largest export partner, receiving over $14 billion in products in the year to October 2025.
- Iraq: Received $10.5 billion worth of goods from Iran.
- United Arab Emirates and Turkey: Also significant customers, with Iran's exports to Turkey increasing from $4.7 billion in 2024 to $7.3 billion last year.
- India: Also cited as a major trading partner.
Iran is a major global oil producer, and nearly all of its top 10 exports are fuel-related products. It also exports food items such as pistachios and tomatoes. Conversely, Iran is a larger importer of staples; food items, including corn, rice, sunflower seeds, oils, and soybeans, make up about one-third of its imports. Gold is Iran's largest import, totaling $6.7 billion in the 12 months to October, an increase from $4.8 billion in the preceding year.
Implementation Challenges and Legal Considerations
The legal basis for this new tariff has not been specified. Previous broad tariffs imposed by the Trump administration under the International Emergency Economic Powers Act are currently facing legal challenges, with a US Supreme Court ruling anticipated soon. Enforcement of the proposed tariff could also prove difficult. Iran reportedly earned billions from oil exports in 2024 through a network of "shadow ships" and by conducting transactions in Chinese yuan rather than US dollars, which can complicate traceability.
Potential International Impacts
The announcement carries the risk of escalating trade tensions, particularly between the United States and China. Chinese goods are already subject to an average tariff rate of 30.8%. An additional 25% tariff would raise questions about whether the new tariff would be cumulative. China has historically responded to US tariffs by imposing its own and by restricting exports of rare earths, materials critical for US tech industries. Beijing has indicated it will "take all necessary measures to safeguard its legitimate rights and interests." Analysts have expressed skepticism about the full implementation of the tariff, noting that the real-world impact of previous Trump announcements has not always matched initial headlines.