Trump Swings The Tariff Hammer Again, Slaps 25% Tariffs On Countries Doing Business With Iran

The announcement carries implications for several countries, including India, which has trade links with Iran over the years.

Washington: United States President Donald Trump on Monday announced a hard-hitting trade move aimed at countries that maintain commercial ties with Iran, declaring a flat 25 per cent tariff on all their business dealings with the United States. The decision was unveiled through a post on Truth Social, where he said the measure would take effect immediately and described the order as final.

“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. Thank you for your attention to this matter!” he wrote, making clear that Washington intends to use economic pressure as a tool to isolate Tehran.

The announcement carries implications for several countries, including India, which has trade links with Iran over the years. New Delhi already faces a cumulative 50 per cent tariff on its exports to the United States, with 25 per cent linked to its continued purchase of Russian oil, a move Washington argues supports Moscow’s war effort in Ukraine.

According to the Ministry of External Affairs, India and Iran are important trade partners, with New Delhi ranking among Tehran’s five largest trading allies in recent years. India exports rice, tea, sugar, pharmaceuticals, man-made fibres, electrical machinery and artificial jewellery to Iran, while importing dry fruits, chemicals and glassware from the country.

Trump’s decision drew praise from senior Republicans, with US Senator Lindsey Graham backing the move and urging stronger action. In a post on X, he wrote, “Mr President: your decisive leadership in isolating this regime economically through your actions today are most impressive. Your promise to have the protestors’ back and put the regime on notice that you will not tolerate the killing has led to the largest outpouring of demonstrators against this fanatical regime since its founding. Mr President: I believe the Iranian regime has crossed red lines. They are killing their people in large numbers and mocking your leadership. It is now time to take decisive military action, no boots on the ground, going after those who do the killing.”

The tariff announcement comes against the backdrop of widespread unrest inside Iran, where demonstrations have been taking place across multiple provinces, including Azerbaijan province, and the central city of Arak. According to Press TV, crowds have been seen waving flags and chanting slogans as protests and counter-demonstrations continue against soaring inflation, economic hardship and growing public anger over governance.

The Human Rights News Agency has reported that at least 544 people have been killed during the unrest, while more than 10,681 individuals have been arrested and sent to prisons.

A day earlier, Trump signalled that Washington could be forced to take further action against Iran if the situation deteriorates, even as he revealed that Iranian leaders had reached out seeking talks. Speaking to reporters aboard Air Force One, he confirmed that Tehran had initiated contact to discuss diplomacy.

When asked directly whether Iran wanted to negotiate with him, he replied, “They do. They called. Iran called to negotiate yesterday. The leaders of Iran called. They want to negotiate. I think they are tired of being beat up by the United States. Iran wants to negotiate.”

The president added that efforts were underway to arrange a meeting, while cautioning that rapidly unfolding events inside Iran could push the United States to act before any talks formally begin.