Trump Announces 25% Tariff on Countries Trading With Iran as U.S. Steps Up Pressure

President Donald Trump on Monday said the United States would impose a 25% tariff on goods from any country that continues to do business with Iran, expanding Washington’s economic pressure campaign at a time of heightened unrest inside the Islamic Republic.

Trump announced the move in a post on Truth Social, calling it “final and conclusive” and stating: “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.”

The announcement, if implemented as described, could have significant implications for global supply chains and trade flows, given Iran’s trade relationships with several regional and major economies. However, the administration has not yet released a formal executive order or detailed legal framework outlining how the tariff would be applied.

A secondary-sanctions-style escalation — but details remain unclear

Trump’s statement resembles a form of secondary sanctions, where third countries are penalized for doing business with a targeted state.

Market participants and policy analysts said the U.S. could attempt to implement such measures using existing emergency and trade authorities, including the International Emergency Economic Powers Act (IEEPA) — an area already facing legal scrutiny due to ongoing litigation tied to tariff actions taken in 2025.

The U.S. Supreme Court is reviewing a major case involving IEEPA-linked tariffs, and a ruling could shape how broadly presidents can use emergency powers to impose trade restrictions.

Focus shifts to Iran’s key trading partners

If enforced broadly, the tariff could raise exposure for countries and trade hubs with continuing commercial links to Iran — particularly in energy, shipping, and regional trade.

Iran’s trading ecosystem includes major players such as China, India, the UAE, Turkey and Iraq, among others. Any penalty structure tied to “doing business with Iran” could create compliance complexity for exporters, importers, and multinational firms operating across borders.

Because tariffs are typically paid at the point of import, economists warned that U.S. importers could ultimately bear the direct cost, potentially passing part of the burden through supply chains into pricing.

Iran unrest adds pressure — but casualty figures remain difficult to verify

The announcement comes amid widespread protests inside Iran that reportedly began in late December following mounting economic stress, including inflation pressure and currency weakness.

Human rights organizations and activist networks have reported a lethal crackdown, but independent verification remains limited, particularly due to disruptions to communications in parts of the country. Some groups have reported hundreds of confirmed deaths, while others have issued higher estimates.

The White House has not provided updated official figures on casualties in Iran.

White House keeps “options on the table”

The tariff announcement also arrives against a broader backdrop of heightened U.S.-Iran tensions.

White House Press Secretary Karoline Leavitt said Monday the administration continues to prioritize diplomacy, but did not rule out military action if conditions deteriorate further. The White House also noted that Special Envoy Steve Witkoff maintains a diplomatic channel with Tehran.

International reaction begins to build

Early reactions signaled potential international resistance.

China criticized the move as unilateral and coercive, and warned it could respond to defend its interests. Other regional economies have also been watching developments closely, particularly given the risk that broad tariff enforcement could spill into energy markets, shipping routes, and commodity-linked supply chains.

For India, the announcement adds sensitivity given longstanding interests in regional connectivity projects, including the Chabahar Port framework.

Summary

President Donald Trump says the U.S. will impose a 25% tariff on countries that trade with Iran, in what could become one of the broadest “secondary” economic pressure actions in recent years. The plan could affect Iran’s major trading partners and potentially raise costs for U.S. importers if implemented at scale. Details on enforcement and legal authority were not immediately released.

Frequently asked questions (FAQs) 

Q1: What did Trump announce?

Trump said the U.S. will impose a 25% tariff on countries that continue to do business with Iran, applying the tariff across their trade with the U.S.

Q2: Has the U.S. issued a formal order?

As of Monday’s announcement, a detailed legal framework or executive order had not been publicly released, leaving questions about enforcement and scope.

Q3: Which countries could be most affected?

Countries widely viewed as having major trade links with Iran — including China, India, the UAE, Turkey and Iraq — could face higher exposure depending on how the tariff is implemented.

Q4: Who pays the tariff in practice?

In most cases, tariffs are paid by the importer at the point of U.S. customs entry, which can increase costs for American businesses and potentially influence consumer prices.

Q5: Is Trump’s tariff authority under review in U.S. courts?

Yes. The U.S. Supreme Court is reviewing legal challenges linked to IEEPA-based tariff actions used in prior trade measures, and that ruling could affect future applications of similar authority.