Trump announces 25% tariff on countries doing business with Iran

U.S. President Donald Trump declared on Monday that any country conducting business with Iran will immediately face a 25% tariff on “any and all” trade with the United States, a sweeping measure aimed at intensifying pressure on Tehran amid its violent crackdown on nationwide anti-government protests.

Announced via a post on Truth Social, Trump stated: “Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive.”

The White House has not yet released formal documentation detailing the legal basis, scope, or implementation timeline, though tariffs would be paid by U.S. importers purchasing goods from affected countries.

The announcement comes as Washington weighs responses to Iran’s ongoing unrest, which erupted in late December over economic hardship and has escalated into calls for regime change, with reports of hundreds or even thousands of deaths during the suppression. It follows recent U.S. military strikes on Iranian nuclear facilities last year and Trump’s repeated threats of further action, including potential direct intervention. Iran, a major oil producer, exports primarily to partners such as China, Turkey, the United Arab Emirates, Iraq, and India, though it maintains trade links with 147 countries worldwide according to 2022 data.

The recent U.S. military build-up around Iran includes a noticeable surge in aerial activity: dozens of KC-135 and KC-46 aerial refuelling tankers, along with heavy transport aircraft like C-5 and C-17s, have been observed departing from U.S. bases and the UK toward the Middle East, while B-52 strategic bombers and additional tankers have taken off from Al Udeid Air Base in Qatar—positioning assets for potential extended-range operations or strikes.

At the same time, Trump has stated that Iran reached out to negotiate – claiming on 11 January that “Iran called to negotiate” and that “a meeting is being set up” – while cautioning that the U.S. “may have to act because of what is happening before the meeting”.

Potential impact on the European Union

The announced tariff poses risks to transatlantic trade and the broader EU economy, even though direct EU-Iran trade has been severely curtailed since the U.S. withdrawal from the 2015 nuclear deal (JCPOA) in 2018 and the reimposition of American sanctions.

The EU maintains limited economic ties with Iran, focused on humanitarian goods, but several member states and European companies have historically engaged in or sought to resume trade in sectors like energy, infrastructure, and pharmaceuticals – often through mechanisms like INSTEX (the EU’s special purpose vehicle designed to bypass U.S. sanctions). Any formal or substantial business with Iran could now trigger the 25% U.S. tariff on exports to the American market, which remains one of the EU’s largest trading partners.

The measure could deter European firms from even minor dealings with Iran, further isolating Tehran economically but also limiting EU strategic autonomy in the Middle East.

The US administration can impose 25% tariffs on goods originating from an individual EU member state that trades with Iran, as determined by rules of origin under US trade law (e.g., via authorities like Section 301 of the Trade Act of 1974 or the International Emergency Economic Powers Act), without necessarily applying them to the entire EU single market – though this could lead to practical challenges, such as rerouting of goods within the EU or retaliatory actions from the bloc as a whole.

This approach has precedents, such as the US targeting specific products from individual EU countries (e.g., cheese from France or olives from Spain) in the Airbus-Boeing WTO dispute, rather than blanket EU-wide application.

However, since EU trade policy is an exclusive EU competence, any broad or bloc-level response (e.g., countermeasures or negotiations) would typically be handled by the European Commission on behalf of all member states, potentially escalating tensions across the single market.

With Reuters, with additional reporting by g.g.

Caption: Iranians walk past an anti-US mural on a street in Tehran, Iran, 3 January 2026. Following a social media message by US President Donald Trump supporting anti-government protests in Iran, the Iranian Foreign Ministry issued a statement condemning his remarks as interference in Iran’s internal affairs. The ministry warned that Tehran’s ‘response to any aggression will be swift, decisive, and comprehensive,’ adding that the United States bears full responsibility for regional instability. EPA/ABEDIN TAHERKENAREH