News / Trump threatens extra 25% tariff on those trading with Iran

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Almost a year after President Trump revealed his arsenal of tariffs to ‘combat global trade deficits’, his justification for their use has continued, to now include almost anything – trade related or not.  

He posted on Truth Social yesterday: “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. 

“This order is final and conclusive,” he added – although this has not yet been published as an official executive order on the White House website, and so cannot be deemed “conclusive”.  

However, if the US president’s social media post indicates official action in the coming days, the repercussions on global trade could be huge.  

Iran exports much of its oil to China, its largest buyer, and according to International Monetary Fund (IMF) data, total trade between China and Iran reached $17.8bn in 2024. 

This means the ‘Iran tariff’ could provoke another ‘tit-for-tat’ situation that saw reciprocal tariffs between the US and China reach 145% in mid-2025.  

Iran’s second top trading partner after China is the UAE, with total trade of $16.1bn in 2024 according to the IMF, with Turkey, India, and Oman among Iran’s other top trading partners.

According to World Bank’s most recent data, Iran exported products to 147 trading partners in 2022. 

Since President Trump’s announcement, countries including Japan and South Kore, indicated they “would monitor developments and take necessary measures” if and when the tariff is made official. 

Outside of Truth Social, the administration has posted no details on which transactions, goods, or entities would be subject to the Iran tariff, or how it would be enforced, creating yet more uncertainty for importers. 

Lars Jensen, consultant and CEO of Vespucci Maritime, asked: “How do you know a specific private company in country A is buying or selling goods or services with Iran? Is there a lower limit? If a company in country A has dealings with Iran of just a few thousand dollars, does this mean all companies in country A are impacted with a 25% tariff?” 

President Trump’s tariff threat is in response to Iran’s violent treatment of demonstrators in mass protests that evolved from complaints about economic hardship to widespread calls for political change.  

Tehran said yesterday it was keeping communication channels with Washington open.