President Donald Trump announced on Monday (January 12) a 25% tariff on any country conducting business with Iran. The announcement, made on his Truth Social platform, comes amid reports of a violent crackdown on protests in Iran, which have resulted in hundreds of deaths. Trump declared, “This order is final and conclusive,” though it remains unclear whether the tariff is legally enforceable or what specific activities constitute “doing business” with Iran.
The tariff could impact U.S. trade relations with several countries, including China, India, the United Arab Emirates, and the European Union, all of which have significant trade ties with Iran. The U.S. has limited direct trade with Iran due to existing sanctions, but substantial trade occurs with countries that do business with Iran.
China, a major ally of Iran, has criticized the tariff as “unilateral coercion and pressure.” China accounts for about 30% of Iran’s foreign trade and nearly 90% of its oil exports. The Chinese embassy in Washington has stated that it will take “all necessary measures” to protect its interests.
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