US President Donald Trump on Monday announced a sweeping new tariff policy targeting countries that continue to do business with Iran. POTUS declared that such nations will face a 25% tariff on all trade with the United States. The move significantly escalates economic pressure on Tehran and risks deepening tensions with several major global economies, including China and India.
The announcement, made via Trump’s Truth Social account, suggests that goods from countries maintaining commercial ties with Iran could become substantially more expensive in the US market.
Donald Trump’s Tariff Declaration On Iran Trade
“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 on Monday.
He added that the directive was non-negotiable, stating, “This Order is final and conclusive.”
However, the president did not specify what activities would qualify as “doing business” with Iran. The lack of clarity has raised questions about how the tariff would be implemented, which countries would be targeted, and whether the penalties would apply solely to goods or extend to services as well.
Why Has Donald Trump Ordered Tariffs On Iran Trade?
Trump’s announcement comes amid heightened unrest in Iran, where hundreds of anti-government protesters have reportedly been killed. The US president has recently floated the possibility of American military intervention to “rescue” protesters.
Since Thursday, Iranian authorities have imposed a sweeping communications shutdown, largely cutting off the country from the outside world and limiting the flow of information.
China To Face The Major Blow Of Donald Trump’s New Iran Tariff Order
The new measure could dramatically increase tariffs on Chinese goods entering the United States. If applied, the additional 25% levy would push the minimum tariff rate on Chinese imports to 45%, up from the current 20%.
According to Chinese customs data, China exported $6.2 billion worth of goods to Iran and imported $2.85 billion during the first 11 months of 2025. These figures do not include oil purchases, which China does not publicly disclose.
Analysts estimate that China has accounted for more than 90% of Iran’s oil exports in recent years, often routed through intermediaries to bypass sanctions.
Which Other Countries Will Be Hit With Donald Trump’s New Iran Tariff Order?
Beyond China, several countries with significant economic ties to Iran could be affected by the proposed tariff, including India, the United Arab Emirates, and Turkey.
India is among Iran’s largest oil importers and has a strategic stake in the Chabahar Port project, which supports regional connectivity. The tariff could target both energy imports and infrastructure cooperation, posing challenges to India’s energy security and foreign policy goals. The move also adds strain to already tense US-India trade relations.
The other countries that will be affected include the European Union, Turkey, the United Arab Emirates, Russia, Iraq, Afghanistan, Pakistan, and others that serve as major destinations for Iranian non-oil exports.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
