US President Donald Trump has escalated pressure on Iran by threatening to impose tariffs on any country that trades with the Islamic Republic, a move that has prompted immediate threats of retaliation from China and raised concerns about a broader global trade war.
Trump signed an executive order on Friday that threatens to impose additional tariffs, potentially at a rate of 25%, on countries that continue to engage in trade with Iran. The order, which does not specify the exact tariff rate but uses 25% as an example, could apply to goods imported into the U.S. from nations that “directly or indirectly” acquire goods or services from Iran. Trump reiterated his stance from Air Force One, emphasizing “no nuclear weapons” for Iran, while the White House stated the order reaffirms the ongoing national emergency with respect to Iran, citing its pursuit of nuclear capabilities and regional destabilization.
China, Iran’s largest trading partner, has threatened to retaliate against the U.S. measures. Liu Pengyu, spokesperson for the Chinese embassy in Washington, said Beijing would “take all necessary measures to safeguard its legitimate rights and interests,” calling tariff wars harmful to all parties. Other major trading partners affected include India, the United Arab Emirates, Turkey, and Japan, with China having purchased over $14 billion worth of Iranian goods in the past year. The U.S. State Department also announced sanctions on 15 entities involved in trading Iranian-origin crude oil and petroleum products.
The tariff threat comes amid widespread anti-government protests in Iran, which have been met with a harsh crackdown involving mass arrests and internet blackouts. Human rights groups report thousands of deaths, although exact figures are unclear due to government restrictions. Trump has linked the tariffs to Iran’s internal situation, suggesting that the regime’s actions necessitate increased pressure, while Iran insists its nuclear program is peaceful and denies seeking nuclear weapons.
This move is part of a broader pattern in Trump’s foreign policy, having abandoned the 2015 nuclear deal during his first term and reinstated sanctions that crippled Iran’s economy. The current executive order echoes previous threats, such as those against countries trading with Venezuela, but represents a significant escalation by targeting entire nations rather than specific companies. The U.S. has maintained secondary sanctions on Iran, but the new tariffs could widen the economic impact globally.
Diplomatic efforts are ongoing, with U.S. and Iranian officials holding talks in Oman, the first since last June when the U.S. bombed Iranian nuclear facilities. The Iranian delegation, led by Foreign Minister Abbas Araghchi, described the discussions as a “good start” with a positive atmosphere, while Trump expressed optimism, stating that Iran “looks like it wants to make a deal very badly.” Oman’s Foreign Minister Badr Albusaidi mediated the talks, which aim to clarify positions and identify areas for progress, with another meeting scheduled for early next week.
Economically, the tariff threat could disrupt global trade, particularly affecting countries that rely on Iranian exports like oil and petrochemicals. China, already facing high U.S. tariffs, might see further strain on trade relations, while other partners like India and the UAE could face increased costs. The uncertainty instilled by such measures poses risks to the world economy, with the International Monetary Fund warning of a “spiral of escalation.” Additionally, Trump’s tariff policies are under legal scrutiny, with the U.S. Supreme Court considering striking down existing tariffs, which Trump warned would create a “complete mess” if reversed.
Looking ahead, the situation remains volatile, with Trump’s national security team reviewing military options against Iran, including airstrikes and targeted actions. The White House has emphasized diplomacy as the first option, but the president’s rhetoric suggests a willingness to escalate if Iran does not comply. The outcome of the Oman talks and potential legal decisions on tariffs will shape the next steps, with the risk of further conflict or a breakthrough in negotiations hanging in the balance.
