President Donald Trump, on Monday, warned that any country conducting business with Iran would face a 25 per cent tariff on all trade with the United States, as Washington weighs its response to escalating unrest in the Gulf country.
In a post on his Truth Social platform, Trump said, “Effective immediately, 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.”
Tariffs are paid by US importers of goods from affected countries. Iran, a member of the OPEC oil-producing group, has been under heavy US sanctions for years and exports much of its oil to China.
Turkey, Iraq, the United Arab Emirates and India are also among its major trading partners.
Trump added, “This Order is final and conclusive,” without offering further details.
There was no official documentation on the White House website outlining the policy, its legal basis, or whether the tariffs would apply uniformly to all of Iran’s trading partners. The White House did not respond to requests for comment.
China reacted sharply to the announcement, with its embassy in Washington criticising Trump’s approach and warning of retaliation. The embassy said China would take “all necessary measures” to protect its interests and opposed “any illicit unilateral sanctions and long-arm jurisdiction.”
A spokesperson added on X, “China’s position against the indiscriminate imposition of tariffs is consistent and clear. Tariff wars and trade wars have no winners, and coercion and pressure cannot solve problems.”
Japan and South Korea, both of which signed trade deals with the United States last year, said they were closely monitoring developments. South Korea’s trade ministry said it planned to take “any necessary measures once the specific actions of the US government become clear.”
Japan’s Deputy Chief Cabinet Secretary, Masanao Ozaki, said Tokyo would “carefully examine the specific content of any measures as they become clear, as well as their potential impact on Japan, and will respond appropriately.”
The tariff threat came as Iran faces its largest anti-government protests in years, following last year’s 12-day war with US ally Israel and US air strikes on Iranian nuclear facilities in June.
Trump has said the United States may meet with Iranian officials and that he is in contact with Iran’s opposition, while simultaneously increasing pressure on Tehran’s leadership and threatening military action.
Iran said on Monday that it was keeping communication channels open with Washington as Trump considers his response to what officials describe as one of the gravest challenges to clerical rule since the 1979 Islamic Revolution.
Protests that began over economic hardship have expanded into calls for the fall of the clerical establishment. US-based rights group HRANA said it had verified 599 deaths since demonstrations began on December 28, including 510 protesters and 89 security personnel.
White House press secretary Karoline Leavitt said on Monday that “diplomacy is always the first option for the president.”
During his second term, Trump has frequently threatened or imposed tariffs over countries’ ties with US adversaries and trade practices he considers unfair. His trade policy is now facing legal scrutiny, with the US Supreme Court considering whether to strike down a broad range of existing tariffs.
According to World Bank data, Iran exported goods to 147 trading partners in 2022.
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