Trump Orders Complete Trade Ban with Iran, Threatens 25% Tariff on Any Country Doing Business with Tehran

Washington: US President Donald Trump late Monday night issued a sweeping directive banning all forms of trade with Iran, dramatically escalating economic pressure on Tehran.

Announcing the move on his social media platform Truth Social, Trump warned that any country continuing trade with Iran will face a 25 per cent tariff on its trade with the United States.

Calling the order “final,” Trump asserted that there would be no reconsideration or rollback of the decision under any circumstances.

Move Aimed at Pressuring Iran, Ripple Effects Expected Globally

The announcement comes at a time when Iran has been witnessing violent protests for over two weeks, adding to political instability within the country.

While the US President’s decision is clearly intended to exert maximum pressure on the Iranian government, its consequences are unlikely to remain confined to Iran alone.

Several major global economies—including India, China, Russia, Turkey, and the United Arab Emirates—are among Iran’s key trading partners.

These countries may now be forced into a difficult strategic choice between continuing economic engagement with Iran or safeguarding their trade relations with the United States.

India Faces Added Pressure Amid Existing Tariffs

The move could further strain India–US trade relations, as Washington has already imposed a 50 per cent tariff on certain Indian exports.

The proposed additional 25 per cent tariff linked to Iran-related trade may deepen tensions between the two countries.

Trump, however, did not clarify how or through what mechanism the new policy would be enforced.

According to official data, bilateral trade between India and Iran stood at approximately $1.68 billion in FY 2024–25.

Iran remains India’s largest buyer of basmati rice. During April–November of FY 2025–26, India exported basmati rice worth $468.10 million to Iran, amounting to 5.99 lakh tonnes.

China Warns of Retaliation

China—the largest buyer of Iranian oil—reacted sharply on Tuesday, strongly objecting to Trump’s tariff announcement.

Beijing warned that it would consider retaliatory measures in response to the proposed 25% duties.

China remains Iran’s largest energy trading partner, particularly in crude oil purchases.

Other Major Trade Partners of Iran

• European Union: Countries such as Germany and Italy maintain trade ties with Iran.
• Turkey: Imports oil and gas from Iran.
• United Arab Emirates: Iran’s second-largest trading partner.
• Russia: Cooperates closely with Iran in the military, energy, and transport sectors.
• Iraq, Afghanistan, and Pakistan also engage in active trade with Iran.

With Washington hardening its stance, the new directive has the potential to reshape global trade alignments and intensify geopolitical fault lines across West Asia and beyond.

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