US President Donald Trump announced on Monday that any country engaging in trade with Iran will be subject to a 25% tariff on all exports to the United States. Posting on Truth Social, Trump said the decision is “final and conclusive” and takes effect immediately. The White House has yet to clarify what qualifies as “doing business” with Iran or whether the tariffs extend to services.
The move is expected to have major implications for China, Iran’s largest trading partner. Analysts say the policy could push the minimum tariff rate on Chinese goods from 20% to as high as 45%. In response, China’s embassy in Washington said it “firmly opposes all illegal unilateral sanctions” and pledged to protect its legitimate rights and interests. India, Turkey, and the United Arab Emirates are also among Iran’s key trading partners likely to be affected.
The announcement comes after a 2025 trade war in which tariffs on Chinese goods rose to as much as 145%. The measures are being imposed under the International Emergency Economic Powers Act, which is currently under review by the US Supreme Court. A ruling expected this month could limit the president’s authority to impose such tariffs and potentially force the US to refund up to $130 billion in collected duties.
