Trump imposes 25% tariff on countries conducting business with Iran
The United States President Donald Trump has imposed a 25% tariff on countries that continue to conduct business with the Islamic Republic of Iran.
The development is coming in the wake of the ongoing revolutionary protests in the middle eastern country, where protesters are demanding an end to the theocratic regime led by Ayatollah Khamenei, while calling for the return of the exile crown prince Reza Pahlavi to the seat of governance.
Trump issued the order in a post on Truth Social on Monday. “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. Thank you for your attention to this matter!” he wrote.
The announcement which has potential consequences for several US trading partners, signals a sharp expansion of the use of tariffs as a foreign policy tool by the US.
Trump had already employed similar measures against other countries, including India which got up to 50% tariff increase on certain goods due to oil trade with Russia.
Iran also maintains trade ties with a number of countries, including India, Turkey, China, among others, which raises concerns about possible disruptions to flows in global trade.
Trump had earlier threatened the Iranian government of severe consequences should it go on killing protesters, stating that the US would hit Iran hard.
The Iranian government had also blamed the United States and Israel for fanning the embers of dissent in the country and facilitating the ongoing protests, threatening to attack US bases in the region and Israel, while on the other hand, Trump noted that the Iranian government had been secretly reaching out, seeking negotiations with the US.
The protests which initially centered around economic grievances have now evolved into a call for regime change.
In addition to several sanctions and snapbacks by the international community against Iran due to their nuclear program pursuit, Israel’s attacks has also weakened Iran’s regional armed proxy groups like Hamas and Hezbollah. The 12-day war between both countries resulted in a catastrophic loss of human and military infrastructures for Iran.
Strikes by the United States dealt significant damage to the country’s nuclear program worth billions of dollars, while also losing billions of investments when Syrian President Bashar al-Assad was ousted in December 2024.
Iran’s economy is therefore on a trajectory of collapse and the people have grown weary, leading to violent protests and the call for regime change in the country.
