US President Donald Trump has announced a 25 percent tariff on all countries conducting trade with Iran, a move he described as “final and conclusive” in a post on Truth Social on Monday. The announcement comes as Iran faces a harsh crackdown on anti-government protests, with thousands feared dead.
Trump did not provide details on how the tariff would be implemented or which countries would be affected. Analysts said it was unclear whether the levy would target all trading partners or focus on major importers, and whether it would be applied on top of existing US tariffs. The legal basis for the measure has also not been specified, raising questions about enforcement.
Iran trades with over 100 countries, with China its largest partner. Between October 2024 and October 2025, China imported more than $14 billion in Iranian goods. Iraq follows with $10.5 billion in imports, while Turkey and the United Arab Emirates also rank among Iran’s top customers. Exports are largely fuel-based, with Iran shipping oil, gas, and petrochemical products. It also exports food products such as pistachios and tomatoes.
Iran’s imports are dominated by staples including corn, rice, sunflower seeds, and soybeans, alongside gold, its single largest import. In the 12 months to October 2025, Iran imported $6.7 billion in gold, up from $4.8 billion the previous year.
Implementing the tariff could prove difficult. Iran reportedly evaded some sanctions in 2024 through opaque shipping practices and by selling oil in Chinese yuan rather than US dollars. Observers warned that the announcement could further strain relations between the US and China. Chinese goods already face an average 30.8 percent tariff in the US, and a new levy could be seen as highly provocative. Beijing has previously retaliated with trade restrictions and warned it would “take all necessary measures to safeguard its legitimate rights and interests.”
Iran’s economy has struggled under years of sanctions, mismanagement, and declining oil sales. Inflation reached 48.4 percent in October, and the local currency has weakened sharply against the US dollar. Essential goods and services, including food, electricity, and water, remain expensive and unreliable, contributing to the widespread protests. The recent removal of fuel subsidies and potential trade restrictions from new tariffs could worsen the economic crisis.
Trump has used the threat of tariffs in the past as a diplomatic tool, though analysts caution that past announcements have not always translated into immediate action. Legal challenges could also delay or limit the implementation of the new 25 percent levy, with the US Supreme Court scheduled to rule on related tariff powers this week.
The announcement adds another layer of uncertainty to an already volatile geopolitical and economic environment, with potential impacts on global trade and the Iranian economy.