US officially imposes 25% tariff on nations trading with Iran

• US President Trump signed an executive order enabling a 25% ad valorem tariff on all goods from countries that trade with Iran, formalizing a social media threat from January.
• The policy specifically targets major Iranian trading partners like China, India, and Russia, empowering the Treasury and Commerce departments to identify and penalize these nations.

The United States has officially imposed a 25% tariff on all countries engaging in trade with Iran, as announced by the White House.

President Donald Trump signed an executive order directing the implementation of this measure, which aims to intensify economic pressure on the Islamic Republic.

This ad valorem tariff, calculated based on the monetary value of imported goods, represents an additional layer to previous sanctions and differs from flat-rate tariffs previously applied.

The order instructs the Treasury and Commerce departments to identify nations conducting business with Iran, potentially applying the levy to a broad range of imports entering the US.

The executive order establishes a formal process for assessing and imposing these tariffs, with the secretaries of State and Commerce tasked with determining eligibility, in coordination with the US Trade Representative and Department of Homeland Security.

While the 25% rate is cited as an illustrative example in the order, it aligns with Trump's earlier statements on the matter.

The measure does not immediately enforce tariffs but enables swift application upon identification of qualifying countries.

This policy emerges against the backdrop of ongoing unrest in Iran, where mass protests—triggered by a currency crisis and economic hardships—have evolved into significant challenges to the leadership, the most severe since 1979.

The US has expressed support for the protesters and deployed naval assets, including the USS Abraham Lincoln, to the region in response to Iran's crackdown, which has resulted in thousands of deaths and arrests.

Additionally, concerns over Iran's nuclear program, which Tehran insists is peaceful, have fueled the decision, coinciding with indirect US-Iran talks in Oman on the same day as the announcement.

The tariff builds on a prior threat issued by Trump in mid-January 2026, where he initially declared an immediate 25% levy on nations trading with Iran via social media.

That earlier statement lacked formal codification until the February executive order.

Primary trading partners of Iran, such as China, India, Turkey, Russia, and Brazil, stand to be most affected, with their combined annual trade with Iran exceeding $10 billion based on recent economic data.

China, as Iran's largest partner and a major importer of its oil, faces particular exposure.
Other nations like the United Arab Emirates and South Korea could also encounter disruptions in their US imports.