Potential Fallout from Trump’s Proposed Tariffs on Iran Trade Partners

Lisa Chang, Asia Pacific Correspondent
3 Min Read
⏱️ 3 min read

As tensions continue to rise between the United States and Iran, President Donald Trump has announced a new set of tariffs targeting countries that do business with the Islamic Republic. In a post on Truth Social, Trump stated that “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 latest move by the Trump administration comes as Iran grapples with widespread anti-government protests, which have been met with a brutal crackdown by the regime. Trump has previously used the threat of tariffs as a means of exerting pressure on other nations, and it appears he is now employing a similar tactic in the case of Iran.

However, the details of how this new tariff would be implemented remain unclear. The White House has not provided specifics on which countries would be affected or how the 25% levy would be applied. It is also uncertain whether the tariff would be in addition to any existing duties the US has already imposed on trade with Iran’s partners.

One of Iran’s largest trade partners is China, which imported over $14 billion worth of Iranian products in the year leading up to October 2025. Other major customers for Iranian goods include Iraq, the United Arab Emirates, and Turkey. Iran’s primary exports are fuel-related, as it is one of the world’s largest oil producers, but it also ships agricultural products such as pistachios and tomatoes.

Enforcing these proposed tariffs could prove challenging, as Iran has been able to circumvent previous sanctions by using a fleet of “shadow ships” to transport its oil and by selling in Chinese yuan rather than US dollars. Additionally, China has demonstrated a willingness to push back against what it perceives as disproportionate actions by the US, including by threatening to restrict exports of rare earth minerals, which are crucial for American high-tech industries.

The potential impact of these tariffs on US-China relations is a significant concern. China is already subject to an average tariff rate of 30.8% on goods sent to the US, and it remains to be seen whether the new 25% levy would be imposed on top of the existing duties or if adjustments would be made.

As the situation continues to evolve, it is clear that Trump’s latest move has the potential to further escalate tensions and disrupt global trade dynamics. The implications for both the Iranian economy and international relations will be closely watched in the coming weeks and months.

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Lisa Chang is an Asia Pacific correspondent based in London, covering the region's political and economic developments with particular focus on China, Japan, and Southeast Asia. Fluent in Mandarin and Cantonese, she previously spent five years reporting from Hong Kong for the South China Morning Post. She holds a Master's in Asian Studies from SOAS.
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