Overview
- President Trump declared the measure effective immediately in a Truth Social post, without defining what qualifies as “doing business” with Iran.
- The move could affect trade with China, India, the United Arab Emirates, Turkey and the European Union, with analysts noting China’s effective rates could rise toward roughly 45% when combined with existing duties.
- The administration has not posted legal paperwork backing the policy, and its tariff authority under the International Emergency Economic Powers Act is under Supreme Court review with a ruling expected soon.
- Iran’s foreign minister said contacts with U.S. envoy Steve Witkoff are ongoing, as the White House says diplomacy remains the priority even as military options are being considered.
- The announcement follows weeks of unrest in Iran, with rights groups reporting hundreds killed and thousands arrested and with markets weighing potential impacts, including higher oil prices.