WASHINGTON — President Donald Trump said the United States would impose a 25 per cent tariff on all trade with any country that does business with Iran, escalating economic pressure on Tehran as it faces its largest anti-government protests in years.
“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent on any and all business being done with the United States of America,” Trump said in a post on Truth Social, adding that the order was “final and conclusive.”
No official documentation outlining the policy appeared on the White House website, and the administration has not clarified the legal authority for the proposed tariffs or whether they would apply to all of Iran’s trading partners. The White House did not respond to a request for comment.
Under U.S. law, tariffs are paid by American importers, meaning the cost would likely be borne initially by U.S. companies and consumers.
Iran, a member of the OPEC oil-producing group, has been under extensive U.S. sanctions for years. It exports most of its oil to China, with Turkey, Iraq, the United Arab Emirates and India also among its key trading partners.
China criticised Trump’s announcement, with its embassy in Washington opposing what it called “illicit unilateral sanctions and long-arm jurisdiction.” A spokesperson said China would take “all necessary measures” to safeguard its interests, adding that “tariff wars and trade wars have no winners.”
Japan and South Korea, both of which reached trade agreements with the United States last year, said they were closely monitoring developments. South Korea’s trade ministry said it would consider its response once U.S. actions became clear, while Japan said it would examine the potential impact and respond appropriately.
Trump’s comments come as Iran grapples with widespread unrest that has evolved from protests over economic hardship into calls for the overthrow of the country’s clerical leadership.
The demonstrations represent one of the most serious challenges to Iran’s ruling establishment since the 1979 Islamic Revolution.
U.S.-based rights group HRANA said it had verified the deaths of 599 people since protests began on December 28, including 510 protesters and 89 members of security forces.
Iran, which fought a brief war with U.S. ally Israel last year and whose nuclear facilities were bombed by U.S. forces in June, said it is keeping communication channels open with Washington. Trump has said the U.S. may meet Iranian officials and that he has been in contact with Iran’s opposition, while also threatening military action.
“Diplomacy is always the first option for the president,” White House press secretary Karoline Leavitt said on Monday, though she acknowledged that other options remain on the table.
The tariff threat is consistent with Trump’s broader trade strategy in his second term, during which he has repeatedly used tariffs to pressure countries over trade practices and ties with U.S. adversaries. However, his approach faces legal uncertainty, as the U.S. Supreme Court is considering whether to strike down a wide range of existing Trump-era tariffs.
According to World Bank data, Iran exported goods to 147 trading partners in 2022, underscoring the potentially wide-reaching implications of Trump’s proposal if it is formally implemented.
