U.S. President Donald Trump on Monday announced a new trade measure imposing a 25% tariff on any country that continues commercial dealings with Iran, sharply escalating Washington’s economic pressure on Tehran amid ongoing civil unrest inside the country.
The announcement was made via Trump’s Truth Social platform, where he said the measure would take effect immediately.
“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,” Trump wrote, calling the decision “final and conclusive,” and signaling no intention to grant exemptions or negotiate waivers.
The policy places several major economies at risk, particularly countries that maintain strong trade ties with Iran. These include China, Iran’s largest trading partner; India, which imports Iranian energy and agricultural products; Turkey, which sustains extensive cross-border trade and energy cooperation; the United Arab Emirates, a key hub for Iranian re-exports; and Russia, which has expanded economic and military ties with Tehran in recent years.
If fully enforced, the measure would create a broad secondary-sanctions effect, forcing governments to choose between maintaining trade with Iran or facing punitive tariffs on their exports to the United States.
Administration officials are expected to rely on the International Emergency Economic Powers Act (IEEPA) as the legal basis for the tariffs, a statute Trump has frequently used during his second term to justify trade restrictions under national security authority.
The announcement comes as the U.S. Supreme Court is preparing to rule, potentially as early as Wednesday, Jan. 14, on the legality of the administration’s broader global tariff framework. Several U.S. states and small business groups have challenged the president’s expansive use of emergency powers to impose trade measures.
For some countries, the policy could result in compounded trade penalties. India, for example, already faces elevated U.S. duties on certain exports, and the additional 25% levy could significantly raise costs if New Delhi continues commerce with Tehran.
The White House defended the move as part of a broader strategy to confront Iran’s crackdown on protest movements. Press Secretary Karoline Leavitt said diplomacy remained the administration’s “first option,” but warned the president was prepared to use “lethal force and might” if Iranian authorities continued violent repression.
Iranian Foreign Minister Abbas Araghchi rejected the accusations, saying Iran’s internal situation was “under control” and accusing Washington of waging economic warfare in support of what he called “terrorist elements” inside the country.
Trade analysts warned that while the tariffs target foreign governments, the immediate financial burden would fall on U.S. importers, who pay the duties at ports of entry. Those costs are likely to be passed on to consumers, raising prices for electronics, industrial components and raw materials sourced from affected countries.
The move represents one of the most aggressive economic measures taken against Iran in recent years and raises the risk of intensified global trade tensions, as governments assess whether to adjust their commercial ties with Tehra
