Trump intensifies trade pressure with 25% tariff on countries doing business with Iran

US President, Donald Trump. [File Courtesy]

U.S. President Donald Trump has launched a new trade offensive, declaring that any country that conducts business with Iran will face a 25 per cent tariff on goods it trades with the United States. The announcement, made via social media and widely reported by international agencies, is expected to impact major global economies and escalate longstanding trade tensions.

US President, Trump. [File Courtesy]

In a post on his Truth Social platform, Trump said the tariff measure would be “effective immediately” and described it as “final and conclusive,” though no full legal text or formal documentation has yet been published by the White House.

Which Nations Could Be Affected

Iran maintains trade links with a wide range of countries, and several major economies could be particularly exposed under the new tariff directive. Data on Iranian trade partnerships indicate that the following are likely to be among those most affected:

  • China, Iran’s largest trading partner by volume.
  • India, a significant buyer and seller of goods with Iran.
  • Turkey, a key regional partner.
  • United Arab Emirates and Iraq, important hubs for Iranian commerce.
  • Germany, part of Iran’s broader European trade links.

Together, these markets account for a substantial share of Tehran’s international trade flows, including petroleum exports, industrial goods and agricultural products.

Global Reaction and Uncertainties

The announcement has elicited strong responses from governments and markets. China’s embassy in Washington criticised the move as coercive and vowed to protect its economic interests, underscoring diplomatic friction with the U.S. over the measure.

Analysts and foreign officials have also flagged legal and logistical uncertainties around the tariff’s implementation, noting the absence of a published legal framework and concerns about how importers will calculate and settle the additional duties.

Context: Iran and International Tensions

The tariff escalation occurs against a backdrop of ongoing anti-government protests in Iran, which have drawn international attention and condemnation over reported fatalities and human rights concerns. Trump’s announcement forms part of broader U.S. pressure on Tehran, alongside existing sanctions and diplomatic efforts.

The move also comes amid legal scrutiny in the United States, where Trump’s broader tariff strategy has been challenged in federal courts, including the Supreme Court, over the scope of executive authority in imposing trade levies.