Trump Announces 25% Tariff on Iran's Trade Partners

In a significant escalation of U.S. policy toward Iran, President Donald Trump has announced a sweeping 25 per cent tariff on any country that maintains trade relations with the Islamic Republic, effective immediately.

The move aims to economically isolate Tehran as nationwide protests in Iran continue to intensify, with rights groups reporting hundreds of deaths amid a harsh government crackdown.

Trump took to his social media platform Truth Social on Monday to declare that “any country doing business with the Islamic Republic of Iran will pay a tariff of 25 per cent on any and all business being done with the United States of America,” stressing that the order is “final and conclusive.” The announcement provided no detailed criteria on enforcement or exceptions, leaving major trading partners uncertain about the policy’s scope.

The new tariff comes as Iran faces one of its most consequential waves of public unrest in decades. The Norway-based Iran Human Rights organisation has estimated at least 648 fatalities in the protests, though the actual number could be significantly higher amid tight government media restrictions and internet shutdowns. Demonstrations, sparked initially by economic discontent, have since evolved into broader demands for political change.

Iran’s main commercial partners include China, Turkey, the United Arab Emirates and Iraq, according to the economic database Trading Economics. The policy is expected to send shockwaves through global markets, especially given the significant volume of trade between these countries and both Iran and the United States.

The Trump administration has portrayed the tariffs as part of broader pressure tactics against the Iranian regime, which the White House suggests should halt the crackdown and consider political reforms. Officials have not ruled out other options, with national security aides indicating that all diplomatic and military responses remain under consideration.

Critics argue that the tariff could strain diplomatic relations with key U.S. partners and unsettle international supply chains without guaranteeing a change in Tehran’s policies. Meanwhile, Iran’s leadership has sought to frame the protests as foreign-instigated unrest, even as its own officials signal openness to negotiations under certain conditions.

As the situation evolves, governments around the world are closely watching the implications of Washington’s aggressive economic posture, both for their bilateral ties with Iran and for their broader strategic relationships with the United States.