US President Donald Trump has announced a 25 per cent tariff on any country trading with Iran, ramping up pressure on the theocratic government in Tehran over its violent crackdown on a wave of protests that have left nearly 600 dead and led to the arrests of thousands across the country. The action can potentially disrupt major US trading relationships across the globe, including with India and China, which are among Iran's main trading partners.
"Effective immediately, any country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent on any business being done with the United States of America. This Order is final and conclusive," Trump said on Truth Social.
The tariff announcement comes as Trump mulls possible military action against Iran over the protests.
"Air strikes would be one of the many, many options that are on the table," White House Press Secretary Karoline Leavitt said earlier Monday.
But she said Iran also had a diplomatic channel open to Trump's special envoy Steve Witkoff, adding that Iran was taking a "far different tone" in private than it was in its public statements.
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Will The Move Impact India?
Though China is considered Iran's biggest trading partner, the move will also impact India, the United Arab Emirates, and Turkey, which are also among Tehran's major trading partners. According to the Indian Embassy in Tehran, India exported goods worth $1.24 billion to Iran in fiscal year 2024-25, while it imported goods worth $0.44 billion, taking total trade to $1.68 billion (approximately Rs 14,000 - Rs 15,000 crore)
Among these, the biggest share was that of organic chemicals worth $512.92 million, followed by edible fruits, nuts, peels of citrus fruits, and melons at $311.60 million, and mineral fuels, oils, and distillation products at $86.48 million, according to a report by Trading Economics.
The United States has already imposed levies as high as 50 per cent on Indian goods tied to their purchase of Russian oil. The additional duties may take tariffs to 75 per cent, further hindering the trade, as the two sides have been working for months to finalise a deal that would provide long-sought tariff relief to New Delhi.
But 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.
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Iran Protests
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 Islamic regime led by Supreme Leader Ayatollah Ali Khamenei. The current unrest amounted to the biggest challenge to the Islamic Republic's ruling system since 1979.
While Khamenei's regime has weathered protests before, the demonstrations are spreading and drew hundreds of thousands of people across the country over the weekend. Iranian authorities have sought to stamp out the protests, with nearly 600 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.
ALSO READ: 648 Killed In Iran Protest Amid Government Crackdown: Rights Group
On Sunday, Trump 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, Bloomberg reported, quoting a White House official. The president is seriously considering authorising an attack, according to the report.
