US Warns of New Tariffs on Countries Trading with Iran as Protests Intensify

 

The United States has issued a strong warning to countries continuing economic relations with Iran, announcing plans to impose a 25% tariff on all trade with the US on nations that do business with Tehran. The move comes amid escalating political unrest in Iran and growing international concern over a violent government crackdown on protesters.

President Donald Trump made the announcement via social media, stating that the tariff would take effect immediately. However, the White House has yet to provide details on how the measure would be implemented, which countries would be targeted, or the legal framework under which it would operate. Despite the lack of clarity, the statement has already sent ripples through global markets and diplomatic circles.

Iran maintains trade ties with more than 100 countries, despite years of US-led sanctions. China remains Iran’s largest trading partner, importing more than $14bn worth of Iranian goods in the year to October 2025, largely crude oil and petroleum products. Iraq follows closely, while Turkey and the United Arab Emirates also feature among Iran’s most significant economic partners.

Iran’s export economy is dominated by energy, as it is one of the world’s largest oil producers. However, the country depends heavily on imports for essential goods, including food staples such as rice, corn and cooking oil. Gold has recently become Iran’s largest single import, widely viewed as a hedge against inflation and currency instability.

Analysts warn that enforcing the proposed tariff would be extremely challenging. Iran has increasingly relied on so-called “shadow fleets” to export oil, using ships that are difficult to track and settling payments in non-dollar currencies, particularly the Chinese yuan. These practices complicate efforts to monitor trade flows and identify violations.

The announcement has also raised concerns about US–China relations, which remain fragile following years of trade disputes. Chinese exports to the US already face high tariffs, and any additional penalties could provoke retaliation. Beijing has previously responded to US trade pressure by restricting exports of rare earth minerals, which are critical to American technology and defense industries.

Iran’s economy is already under severe strain. High inflation, a sharply weakened currency and reduced fuel subsidies have driven up the cost of living for millions. Economic hardship has been a key driver of the protests that have spread across the country in recent weeks, presenting one of the most serious challenges to Iran’s leadership in decades.

Economists caution that further trade restrictions could deepen Iran’s economic crisis, potentially pushing inflation higher and worsening shortages of essential goods. At the same time, the tariff threat places pressure on Iran’s trading partners, forcing them to weigh economic ties with Tehran against access to the US market.

While it remains unclear whether the tariff will be fully implemented or used as leverage in negotiations, the warning signals a tougher US stance toward Iran and its allies. The coming weeks are likely to determine whether the policy marks a significant shift in global trade dynamics or becomes another flashpoint in an already volatile geopolitical landscape.

By Mohamed Cawil