Overview
- The president declared on Truth Social that, effective immediately, any country doing business with Iran will face a 25% tariff on all its trade with the United States.
- The White House has not issued an executive order or guidance and declined to elaborate, leaving unclear how “doing business” will be defined or whether the levy stacks on top of existing duties.
- Trade partners with significant ties to Iran—particularly China, India, the United Arab Emirates and Turkey—could be hit, and analysts say effective rates on some Chinese goods could rise to roughly 45%, risking a fragile truce.
- The legal basis remains uncertain as the administration’s use of the International Emergency Economic Powers Act for tariffs is under Supreme Court review with a ruling expected this month.
- Officials say diplomacy is the preferred approach even as military options, including airstrikes, remain on the table, and the move follows reports of hundreds killed during Iran’s protest crackdown and a nationwide communications shutdown.