Trump Announces 25% Tariff on Countries Trading With Iran
New Penalty Aims to Increase Pressure on Tehran Amid Unrest
Key Takeaways:
- President Donald Trump said Jan. 12 he imposed a 25% tariff on goods from countries doing business with Iran, effective immediately, without detailing scope.
- The move escalates pressure on Tehran amid weeks of mass protests and could hit major Iran traders like India, Turkey and China, risking trade frictions.
- The administration has not issued guidance and the tariffs could complicate U.S. trade deals, including a China truce and prior levies tied to Indian purchases of Russian oil.
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President Donald Trump said he is imposing a 25% tariff on goods from countries “doing business” with Iran, ratcheting up pressure on the government in Tehran that has been rocked by widespread protests.
Trump posted on social media on Jan. 12 that the new duty would be “effective immediately,” without providing further detail. The administration has yet to issue paperwork outlining the scope of the charges.
“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,” he said.
Trump offered little clarity about how he defined “doing business with Iran.” The Islamic Republic’s major trading partners include India, Turkey and China.
The U.S. president already imposed levies as high as 50% on Indian goods tied to their purchase of Russian oil. An additional 25% tariff hitting products from Beijing risks upsetting the trade truce Trump negotiated with Chinese President Xi Jinping late last year.
Iran has experienced weeks of mass unrest, which was initially sparked by a currency crisis and worsening economic conditions but has increasingly been aimed at the regime. It’s amounted to the biggest challenge to the Islamic Republic’s ruling system since 1979.
While Supreme Leader Ayatollah Ali Khamenei’s regime has weathered protests before, the demonstrations are spreading and drew hundreds of thousands of people, by some accounts, across the country over the weekend. Iranian authorities have sought to stamp out the protests with more than 500 people killed so far and more than 10,000 arrests, according to the Human Rights Activist News Agency.
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