Trump Threatens 25% Tariff on Countries Trading With Iran

President Donald Trump said Monday that any country doing business with Iran will face a 25% tariff on trade with the United States, in a post on his Truth Social platform.

“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. He added that the order was “final and conclusive,” though no executive order or official guidance has been published.

The announcement would expand U.S. pressure beyond Iran itself, which has faced heavy American sanctions for years, by targeting countries that continue to trade with Tehran. If carried out, the move would mark a notable shift in U.S. policy, relying on tariffs rather than traditional sanctions to squeeze Iran’s economic partners.

However, key details remain unresolved. The White House has not issued a formal order, legal citation, or timetable for implementation. Trump did not define what qualifies as “doing business” with Iran, whether services would be included alongside goods, or how U.S. authorities would determine which countries fall under the policy. It is also unclear how the tariff would be applied in practice, beyond Trump’s claim that it would take effect immediately.

Iran’s major trading partners could be exposed if the policy moves forward. According to the World Bank, China is Iran’s largest trading partner, accounting for more than a quarter of its imports and exports. Other significant partners include the United Arab Emirates, India, Turkey, and Iraq. In China’s case, the new tariff could stack on top of existing U.S. duties, sharply increasing the effective rate on some imports.

Beijing was the first to respond publicly. China’s embassy in Washington said it “firmly opposes any illicit unilateral sanctions and long-arm jurisdiction,” adding that Beijing would take “all necessary measures to safeguard its legitimate rights and interests.” A spokesperson said China’s opposition to the indiscriminate use of tariffs was “consistent and clear,” warning that tariff wars and trade wars have no winners and that coercion and pressure cannot solve problems. As of Tuesday, there have been no public responses from the European Union, Japan, or the United Nations.

Markets showed early, indirect reactions to the announcement and broader regional uncertainty. Oil prices moved higher on concerns about supply risk tied to Iran, a major energy producer. Gold and silver prices also strengthened as investors turned to safe-haven assets. Some currencies in countries closely tied to global trade showed early weakness, like the Indian rupee. Stock markets in the United States and abroad did not show a sharp or immediate reaction, suggesting investors are waiting for clearer details on whether and how the tariff threat will be enforced.