President Trump announced a sweeping new trade policy on January 12, 2026, declaring that any country that continues doing business with the Islamic Republic of Iran will face a 25% tariff on all trade with the United States. The move was announced by Trump in a post on Truth Social, where he called the order “final and conclusive,” and comes amid escalating protests and political unrest inside Iran.
In his message, Trump stated that the tariff would be effective immediately on any nation that maintains economic relations with Iran. The announcement did not yet include formal documentation outlining the measure’s legal basis or specifics on enforcement. This action is part of a broader effort to intensify pressure on Tehran at a time when anti-regime demonstrations have entered their third week across the country.
The tariff is intended as a diplomatic and economic tool to coerce foreign governments into distancing themselves from the Iranian regime, which has faced significant internal unrest and a violent crackdown on protesters. According to international reporting, the protests have been the most widespread challenge to Iran’s leadership since the 1979 Islamic Revolution, with reports of hundreds of deaths amid security force responses.
Countries with notable trade ties to Iran — including China, India, Turkey, and the United Arab Emirates — could be among those affected, though the administration has not specified how it will define “doing business” or enforce the tariff. Economic analysts caution that such tariffs could disrupt global trade and strain relations with key U.S. partners.
The policy represents an escalation of Trump’s “maximum pressure” strategy against Iran, which has previously included sanctions aimed at Iran’s nuclear and military programs. Tariffs targeting nations that trade with Iran can be considered “secondary tariffs,” a concept seen in the Trump administration’s broader trade and foreign policy toolkit.
The announcement also comes at a moment when Trump is reportedly weighing multiple policy options in response to the situation in Iran, including diplomatic engagement and maintaining pressure through economic measures. Iranian leaders have signaled a willingness to open negotiations, though they have simultaneously rejected what they describe as overly strict demands.
While the tariff order signals a robust stance by the U.S. against the Iranian regime, experts note that legal authority and implementation details remain unclear, as formal legislation or executive orders have not yet been released. Trump’s use of trade tariffs as a foreign policy instrument reflects a trend in his administration’s broader approach to confronting global adversaries.
