Trump Threatens 25% Tariffs on Countries Trading with Iran

25%. That's the tariff rate President Donald Trump is threatening to impose on any country that continues trading with Iran. The executive order signed Friday doesn't just target Iran—it casts a wide net over "any nation that directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran."

The Carrot and the Stick

The timing is telling. Trump signed this order while senior US and Iranian officials were meeting in Oman for their first talks since June, when the US bombed Iran's three main nuclear facilities. Speaking from Air Force One, Trump described Friday's discussions as "very good," adding that Iran "looks like it wants to make a deal very badly."

The Iranian delegation was led by Foreign Minister Abbas Araghchi, while the US sent special envoy Steve Witkoff and Trump's son-in-law Jared Kushner. Araghchi called the talks "a good start" with a "positive atmosphere," though negotiators have returned to their capitals for consultation.

The Economics of Isolation

Trump's tariff threat isn't new—he floated the same 25% rate on Truth Social back in January. But implementing it would be complex. Iran's major trading partners include China (its largest oil buyer), Turkey, India, and Russia. Slapping tariffs on goods from these countries would inevitably hit American consumers and businesses.

Consider the ripple effects: Chinese imports facing an additional 25% tariff would drive up costs for everything from electronics to clothing. Turkish steel, Indian pharmaceuticals, Russian energy products—all would become more expensive for US importers. The policy designed to pressure Iran could end up pressuring American wallets instead.

A Pressure Campaign at Peak Moment

Why now? Iran is facing what observers call a "perfect storm" of challenges. Last month's nationwide protests resulted in thousands of deaths according to human rights groups, though internet restrictions make the full scale unclear. The country's economy remains crippled by existing sanctions, and its nuclear program continues to draw international scrutiny.

Trump seems to sense vulnerability. "If they don't make a deal, the consequences are very steep," he warned, while declaring that Supreme Leader Ali Khamenei should be "very worried." The US has also deployed what Trump calls a "massive armada" to the region—a show of force backing up economic threats.

The Precedent Problem

This approach—threatening tariffs on third countries for their trade relationships—represents an escalation in economic diplomacy. It's secondary sanctions with a tariff twist, extending US economic leverage beyond direct bilateral relationships.

But it raises questions about the limits of American economic power. Will allies accept being penalized for legitimate trade relationships? Could this push countries toward alternative trading systems that bypass US influence? The European Union, for instance, has already created mechanisms to facilitate Iran trade despite US sanctions.