US President Donald Trump announced on Monday that countries trading with Iran will now face an additional 25 per cent tariff on their business with the United States.
The move signals a tougher stance toward Tehran and its international partners. It could have repercussions for nations such as India, whose exports to the US may face a cumulative 75 per cent tariff.
In a statement shared on social media, Trump wrote, “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!”
The announcement did not provide details on the sectors affected or the mechanism of implementation.
Experts warn that this step could heavily impact global trade flows, particularly for nations with significant economic ties to both the US and Iran.
Indian exporters, especially in the pharmaceutical and textile sectors, may face heightened costs and reduced competitiveness.
White House Maintains Diplomacy-First Stance
Earlier in the day, the White House emphasised that diplomatic engagement remains a priority even as military options remain on the table.
Press Secretary Caroline Leavitt stated that the administration is monitoring private communications from Tehran. She added that it is also focusing on preventing further violence in Iran, even when these messages differ from the regime’s public statements.
“Diplomacy is always the first option for the President,” Leavitt told reporters, while noting that the President is prepared to escalate if necessary.
She also highlighted the continued role of Special Envoy Steve Witkoff in facilitating diplomatic channels.
While the administration is pursuing dialogue, Leavitt made clear that Trump’s readiness to use military force remains a deterrent. Tehran is fully aware of the US President’s previous decisive actions.
“The President has shown he’s unafraid to use military options if and when he deems necessary, and nobody knows that better than Iranians,” she said.
The announcement comes amid ongoing unrest in Iran and heightened scrutiny of US foreign policy toward the Islamic Republic. It signals a complex mix of economic pressure, diplomacy, and potential military leverage.
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