Trump announces immediate 25% tariff on any country doing business with Iran

Key topics:Trump imposes 25% tariff on nations trading with Iran, raising tensions.Tariffs could strain US ties with China, India, and Middle Eastern partners.Iran protests intensify; US signals military and diplomatic options..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Hadriana Lowenkron.President Donald Trump said he is imposing a 25% tariff on goods from countries “doing business” with Iran, ratcheting up pressure on the government in Tehran that has been rocked by widespread protests. Trump posted on social media on Monday that the new duty would be “effective immediately,” without providing details about the scope or implementation of the charges. The action has the potential to disrupt major US trading relationships across the globe. Iran’s partners include not only neighboring states, but large economies including India, Turkey and China. “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 said. .The US president already imposed levies as high as 50% on Indian goods tied to their purchase of Russian oil. The two sides have been working for months to finalise a deal that would provide long-sought tariff relief to New Delhi..Read more:.Trump threatens extra 10% tariffs on BRICS nations for anti-American policies, escalating global trade tensions.The South Asian nation’s commercial ties with Iran are modest, accounting for just 0.15% of India’s total trade. Iran was once India’s third-largest crude oil supplier, but New Delhi halted purchases in 2019 after the US reinstated sanctions on Tehran.While the scope of Trump’s latest tariff actions remains unclear, India’s interests in Iran’s Chabahar port could come under scrutiny. The port provides India with a key gateway to Afghanistan and Central Asia via the International North-South Transport Corridor, allowing it to bypass rival Pakistan. India signed a long-term agreement in 2024 to operate the strategic port and expand its regional footprint.An additional 25% tariff hitting products from Beijing risks upsetting the trade truce Trump negotiated with Chinese President Xi Jinping late last year. China is the world’s top buyer of Iranian crude and the nation’s independent refiners were increasing their intake of the oil as of last month. Hanging over the threat is an impending decision by the US Supreme Court on the legality of Trump’s global tariffs. If the justices rule against him, it could hamper his ability to quickly impose duties on Iran’s partners. The court’s next opinion day is Wednesday. Iran has experienced weeks of mass unrest, which was initially sparked by a currency crisis and worsening economic conditions but has increasingly been aimed at the regime. It’s amounted to the biggest challenge to the Islamic Republic’s ruling system since 1979. While Supreme Leader Ayatollah Ali Khamenei’s regime has weathered protests before, the demonstrations are spreading and drew hundreds of thousands of people, by some accounts, across the country over the weekend. Iranian authorities have sought to stamp out the protests with more than 500 people killed so far and more than 10,000 arrests, according to the Human Rights Activists News Agency.Trump has openly backed the protesters and warned Tehran against violently repressing the demonstrations. In an interview on Fox News last week, he said the US would hit Iran “very hard” if it continued to shoot at protesters.On Sunday, the president told reporters that the Iranian leadership has reached out to seek talks and that a meeting is being set up, without offering details on timing. Still, he said that his administration is considering potential options and indicated he was coordinating with allies in response to Iran.“We’re looking at it very seriously. The military is looking at it, and we’re looking at some very strong options,” Trump told reporters. “I’m getting an hourly report and we’re going to make a determination.”Trump has been briefed on a range of options for military strikes in Iran, including nonmilitary sites, a White House official said over the weekend. The president is seriously considering authorizing an attack, according to the official who requested anonymity to detail internal discussions.Iranian Foreign Minister Abbas Araghchi has opened channels of communication with Trump’s Middle East envoy, Steve Witkoff, a spokesman from the ministry said Monday.Iran has warned the US and Israel — which coordinated to carry out strikes on nuclear facilities in the country last year — against any attempt to intervene. Tehran and Washington have not had formal diplomatic ties for decades.Trump’s threats to Iran have the region on edge, coming on the heels of a US strike earlier this month in Venezuela — another oil-rich country — which led to the capture of strongman Nicolas Maduro. Should the US or its ally, Israel, intervene, that threatens to draw neighbouring countries into the crisis and risk access to the Strait of Hormuz, a key waterway for energy exporters..© 2026 Bloomberg L.P.

Trump announces immediate 25% tariff on any country doing business with Iran

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