U.S. President Donald Trump, on Monday, declared that Washington will enforce a 25% tariff on nations trading with Iran, citing Tehran’s violent suppression of mass protests.
“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 wrote on Truth Social. “This order is final and conclusive,” he added.
The White House refused to provide further details on the tariff or how the Trump administration intends to enforce it. India and China are expected to be hit hardest as major trading partners of Iran.
Trump’s apparent push to economically isolate Iran comes as the oil-rich Middle Eastern nation grapples with widespread anti-government protests. Reports indicate dozens of demonstrators have been killed in recent weeks, prompting Trump to warn of possible military action if the violence continues.
Already burdened by tough U.S. sanctions, Iran is dealing with plunging currency and soaring inflation, with food prices rising by up to 70%. With food accounting for around one-third of the country’s imports, new tariffs could further intensify shortages and costs.
According to the World Bank, more than 140 countries continue to trade with Iran, though in many cases the volumes are very small. China is Iran’s largest trading partner by a wide margin, accounting for 77% of its oil exports in 2024, based on figures from data firm Kpler. Other major trading partners include India, the United Arab Emirates, Japan, and South Korea.
China is already subject to a 45% tariff on most goods, while India currently faces a 50% tariff for purchasing Russian oil.
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