U.S. President Donald Trump announced on Monday that any nation conducting business with Iran would face a 25 per cent tariff on trade with the United States, as Washington weighs its response to the largest anti-government demonstrations in Iran in years.
“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,” Trump said in a post on his Truth Social platform. “This Order is final and conclusive,” he added, without providing further details.
The measure, if implemented, would represent one of the most sweeping trade restrictions of Trump’s presidency. However, there was no official documentation of the order on the White House website, and officials have not clarified under what legal authority the tariffs could be imposed or whether they would apply to all of Iran’s trading partners.
Policy Ambiguity and International Reaction
Iran remains under extensive U.S. sanctions targeting its energy, banking, and defence sectors. Its key export markets include China, the United Arab Emirates, and India — all of which could be affected by Trump’s proposed tariffs. The White House did not respond to media requests for comment, and none of the affected governments have yet issued statements.
Analysts noted that tariffs are effectively paid by U.S. importers, meaning the policy would increase costs for American businesses importing goods from targeted countries. Trump’s previous use of trade measures against allies and rivals alike including China, Canada, and the European Union drew criticism for raising domestic prices and straining alliances.
During his second term, Trump has repeatedly used tariffs as a foreign policy tool to punish nations engaging with U.S. adversaries or to force trade concessions. However, his broader tariff strategy faces legal uncertainty, as the U.S. Supreme Court is currently reviewing cases that could limit presidential authority over such trade actions.
Escalating Crisis in Iran
The announcement comes amid mounting unrest in Iran, where anti-government protests have entered their third week. The demonstrations began on 28 December over worsening economic conditions and have since evolved into direct calls for the overthrow of the country’s clerical leadership.
Rights group HRANA said it had verified the deaths of at least 599 people including 510 protesters and 89 security personnel since the unrest began. The protests pose one of the most serious challenges to Iran’s leadership since the 1979 Islamic Revolution.
Iran’s government confirmed on Monday that communication channels with Washington remain open as the U.S. considers its next steps. Trump has said he is in contact with elements of Iran’s opposition while keeping the possibility of direct engagement with Iranian officials on the table.
Tehran has accused Washington of fuelling unrest, while Trump has warned that “all options,” including military action, remain under consideration. The White House, however, stressed that diplomacy remains the president’s preferred course. “Air strikes are one of many alternatives open to the president, but diplomacy is always the first option,” Press Secretary Karoline Leavitt told reporters.
Trade, Sanctions, and Strategic Pressure
Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), exported goods to 147 trading partners in 2022, according to World Bank data. Any attempt to pressure those partners through tariffs would mark a new escalation in Washington’s use of economic leverage against Tehran and its allies.
The latest move highlights Trump’s dual-track strategy of economic coercion and diplomatic overtures as he seeks to contain Iran’s influence while managing domestic and international fallout. Whether the proposed tariff order will take effect remains unclear, but the threat alone has already added uncertainty to global markets and trade relationships.
with inputs from Reuters
