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Trump announces immediate 25% tariff on countries trading with Iran
U.S. President Donald Trump declared on Monday that any nation conducting business with Iran will face a 25% tariff on all trade with the United States. The move comes as Iran faces widespread anti-government protests, with reports suggesting thousands of fatalities.
Lack of details raises questions
Trump's statement, posted on Truth Social, lacked specifics on implementation. The post read: "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. This order is final and conclusive."
The White House has not provided further clarification on how the tariff would be enforced, which countries it would target, or whether it would apply in addition to existing tariffs.
Iran's key trade partners
Over 100 countries engage in trade with Iran, with China as its largest export partner. In the year leading to October 2025, China imported $14 billion worth of Iranian goods, primarily oil. Iraq followed with $10.5 billion in imports, while Turkey saw a significant increase, importing $7.3 billion in 2025-up from $4.7 billion the previous year.
Iran's exports are dominated by fuel, though it also ships food products like pistachios and tomatoes. Conversely, Iran imports substantial quantities of food, including corn, rice, and soybeans, with gold being its largest import at $6.7 billion in the past year.
Legal and economic challenges
The U.S. has not specified the legal basis for the new tariff. Previous tariffs were imposed under the International Emergency Economic Powers Act, which is currently under Supreme Court review. Trump warned on Monday that the U.S. would face severe consequences if these tariffs were not upheld.
Enforcement may prove difficult, as Iran has circumvented sanctions by using untraceable "shadow ships" and conducting oil sales in Chinese yuan rather than U.S. dollars.
Potential fallout with China
Trump's announcement risks escalating trade tensions with China, which already faces an average U.S. tariff rate of 30.8%. Analysts question whether the new 25% tariff would be additive or replace existing levies. China has previously retaliated against U.S. tariffs by restricting exports of rare earth minerals, critical for American tech industries.
"China will take all necessary measures to safeguard its legitimate rights and interests," a Chinese government spokesperson warned.
Iran's economic crisis fuels protests
Despite its vast oil reserves, Iran's economy has been weakened by years of mismanagement, declining oil sales, and international sanctions. Inflation reached 48.4% in October, and the Iranian rial has depreciated sharply against the U.S. dollar, making imports more expensive.
Protests have erupted over rising living costs, with many Iranians struggling to afford basic necessities. Government restrictions on women's employment have also contributed to a decline in the employment rate, now at 37%, down from 42.4% two decades ago.
Analysts warn that reduced fuel subsidies and potential trade disruptions from the new U.S. tariffs could further destabilize Iran's economy.
