Overview
- President Trump announced the move on Truth Social, framing it as punishment for Iran’s violent crackdown on protests and as pressure on third countries to cut ties with Tehran.
- Despite the announcement, the White House has not issued a formal order, and it is unclear whether the 25% duty would be added to or replace existing tariffs.
- China, Iran’s largest trading partner, condemned the plan, warning there are no winners in a tariff war, while other exposed partners include Turkey, the UAE, Iraq and several EU states.
- German officials and industry groups flagged economic risks even as Germany’s trade with Iran has declined, and Berlin is engaging Washington diplomatically to clarify potential impacts.
- The Supreme Court is expected to rule soon on the legality of broad tariffs based on emergency powers, a decision that could force repayment of duties and heighten business uncertainty.