President Trump Announces 25% Tariff On Countries That Trade With Iran

President Donald Trump has announced a new tariff aimed at countries that do business with Iran in a move that could shake global trade and undermine the fragile trade truce between the US and China.

In a brief social media post on Monday, Trump said: “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.” He added that the measure is “effective immediately” and described it as “final and conclusive,” but offered no details on how it would work or what transactions would be covered.

The lack of clarity has left governments, businesses and markets guessing. It is not clear whether the new tariff would stack on top of existing import taxes or how the US would define “doing business” with Iran. Economists warn that if the tariff is added to current duties, the hit to the US economy could be significant, especially given how abruptly it would take effect.

The announcement potentially affects dozens of countries, including China, India, Russia, Turkey and Iraq. China is by far Iran’s largest trading partner and is believed to buy the vast majority of Iran’s exported oil, while also investing heavily in infrastructure projects there.

Beijing’s initial response was muted. Chinese officials repeated a familiar warning, saying: “There is no winner in a tariff war,” and pledged that China would “firmly safeguard its legitimate and lawful rights and interests.” Analysts say the restrained tone likely reflects uncertainty over whether China might be exempted, particularly given its one-year trade truce with Washington.

That truce, which was agreed last November after months of damaging tit-for-tat tariffs, brought China’s average US tariff rate down sharply and included concessions that were important to Trump, such as increased Chinese purchases of US soybeans and improved access to rare earth minerals. Reimposing higher tariffs on China could quickly unravel that deal and trigger retaliation. Trump has also signaled that he wants a stable relationship with Beijing and is planning a visit to China in April, adding to the expectations that some kind of exemption for China may be in the works.

The White House has not explained the legal basis for the new tariffs, though trade experts say Trump is likely relying on the 1977 International Emergency Economic Powers Act, which underpinned many of his earlier trade actions. Those measures are currently facing legal challenges that could soon reach a turning point at the Supreme Court.

The tariff threat comes as tensions with Iran are rising on multiple fronts. Tehran is grappling with widespread protests that have turned increasingly violent, while human rights groups say that hundreds of demonstrators have been killed. Iranian Foreign Minister Abbas Araghchi said this week: “We are not warmongers, but we are prepared for war. … We are also prepared for negotiations, but fair negotiations, with equal rights and mutual respect.”

Trump, meanwhile, said the US is weighing “very strong options” and claimed Iran had reached out about possible talks, though he suggested action could come before any meeting takes place.

For now, the tariff announcement has injected fresh uncertainty into global trade. With key details missing and major economies potentially in the firing line, the next steps — and whether exemptions emerge — could determine whether this is a negotiating tactic or the start of another full-blown trade war.