Trump Imposes 25% Tariff on Countries Doing Business With Iran

US President Donald Trump has imposed an immediate 25 per cent tariff on any nation conducting business with Iran, intensifying economic pressure on Tehran amid its violent suppression of widespread protests. The measure, announced via Truth Social, applies to all trade with the United States for countries engaging with the Islamic Republic. This policy escalation coincides with ongoing unrest in Iran, where nearly 600 deaths and over 10,000 arrests have been reported in response to demonstrations challenging the regime.

The tariff targets major trading partners of Iran, including China, India, the United Arab Emirates, and Turkey. For India, bilateral trade with Iran reached approximately $1.68 billion in fiscal year 2024-25, with exports totaling $1.24 billion and imports $0.44 billion. Key Indian exports include organic chemicals valued at over $512 million, edible fruits and nuts at $311 million, and mineral fuels at $86 million. The new duties risk significantly disrupting these flows and complicating ongoing bilateral negotiations with Washington for tariff relief on other Indian goods.

The announcement arrives against the backdrop of heightened US-Iran tensions, with the White House indicating that military options, including airstrikes, remain under active consideration. Press Secretary Karoline Leavitt noted that while diplomacy through a special envoy persists, private communications from Tehran contrast with its public rhetoric. President Trump has publicly supported the protesters and warned of severe consequences for continued repression, while confirming outreach from Iranian leadership for potential talks.

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India already faces substantial US tariffs—up to 50 per cent—linked to its purchases of Russian oil, and the additional Iran-related levies compound existing trade frictions. Efforts to secure preferential treatment through a bilateral agreement have progressed slowly, and the new policy threatens to undermine these discussions. The overall impact could elevate costs for Indian exporters and importers while straining economic relations with a key strategic partner in the Middle East.

A pending US Supreme Court ruling on the legality of Trump's broader tariff authority adds uncertainty to the measure's enforcement. The court's forthcoming decision could limit or validate the president's ability to unilaterally impose such duties. Meanwhile, protests in Iran continue to expand, representing one of the most significant challenges to the Islamic Republic's authority since its establishment, with authorities maintaining a firm stance against the demonstrators.

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