The United States will charge a 25% tariff on imports from countries “doing business” with Iran, effective immediately, President Donald Trump said in a Truth Social post Monday.
Trump said the order for the levies was “final and conclusive,” but the White House has not yet published official documentation nor defined what constitutes “doing business” with Iran.
“For context, China is Iran’s largest trading partner, followed by Iraq, the United Arab Emirates, Turkey, and India—a list that reads less like a sanctions target set and more like a global supply chain stress test,” Pete Mento, director of global trade advisory services at Baker Tilly, said in a LinkedIn post.
The threat comes amid weeks of nationwide protests in Iran that have led to thousands of demonstrators' casualties, according to reporting from the Associated Press. Beyond tariffs, Trump has also floated taking military action against Iran in response to its government’s handling of the demonstrations.
The duties Trump announced this week mirror similar levies he threatened last year on imports from countries that buy oil or gas from Venezuela. The so-called “secondary tariffs” were never put into effect but can be installed at the discretion of the Secretary of State, per an executive order signed by Trump. However, no such executive order has been published for the tariffs on goods from Iran’s business partners.
Trump implemented the secondary tariff on buyers of Venezuela oil and gas via the International Emergency Economic Powers Act, relying on a national emergency that was first installed during the Obama administration. It is unclear if Trump would use a similar tactic for imposing duties on goods from Iran’s trading partners.
Trump’s use of IEEPA to enact duties is currently under scrutiny by the Supreme Court, however, with a ruling expected in the coming weeks.
Last week, the Department of Justice confirmed that if the high court were to strike down IEEPA tariffs and order the government to issue refunds, it would make reimbursements available for all levies instituted under the statute.
However, Trump has publicly condemned any potential reversal of the tariffs and potential refunds.
“It would be a complete mess, and almost impossible for our Country to pay,” Trump said in reference to tariff refunds in a Truth Social post Monday. “Anybody who says that it can be quickly and easily done would be making a false, inaccurate, or totally misunderstood answer to this very large and complex question.”
Editor’s note: This story has been updated to clarify the status of tariffs on imports from buyers of Venezuela oil and gas.
