Trump Reveals 25% Tariff Threat Against Iran Allies

By John Pranay (Editor)

A 25% tariff threat has been issued by US President Donald Trump against countries doing business with Iran. The move is part of a broader effort to influence foreign policy and "punish" nations that don't align with the US. The new tariff policy, announced on Monday, would apply to any country engaging in trade with Iran, with the US imposing a 25% levy on all business done with the US.

The situation unfolded on Monday, when President Trump posted a statement on Truth Social announcing the new tariff policy. The White House has yet to provide further clarification on the policy's scope and legal authority. Experts warn that the tariffs may

The humanitarian impact of the tariff threat is expected to be minimal in India, according to government sources. India's trade with Iran is limited, accounting for just 0.15% of its overall trade. In 2024, India's total trade with Iran stood at around $1.6 billion, with exports primarily consisting of food items and pharmaceuticals. Exporters have downplayed concerns, citing the humanitarian nature of most shipments and the country's compliance with US Office of Foreign Assets Control norms.

The tariff threat could reignite the trade war between the US and China, with the average US levy on Chinese exports increasing to 72%. This could lead to a range of regulatory, financial, and physical risks, including:

• Increased trade tensions between the US and China

• Potential disruptions to global supply chains

• Increased costs for American consumers

• Potential retaliatory measures from China

The next steps in the situation are unclear, but the US is likely to continue weighing its response to the situation in Iran. The Iranian government has been facing its biggest anti-government protests in years, and the US may be seeking to leverage its economic influence to shape the outcome. Upcoming dates to watch include:

• Potential diplomatic negotiations between the US and Iran

• Further clarification on the scope and implementation of the new tariff policy

• Potential retaliatory measures from China or other countries affected by the tariff threat

Q: What is the scope of the new tariff policy?

A: The policy applies to any country doing business with Iran, with the US imposing a 25% levy on all business done with the US.

Q: How will the tariff threat impact India?

A: The humanitarian impact is expected to be minimal, with India's trade with Iran accounting for just 0.15% of its overall trade.

Q: What are the potential risks of the tariff threat?

A: The threat could reignite the trade war between the US and China, leading to increased trade tensions, potential disruptions to global supply chains, and increased costs for American consumers.

Our internal tone gauge currently reads: Bearish for this development.

1. Trump Threatens Tariffs on Countries 'Doing Business' With Iran. Here's Who Could Be Affected — https://time.com/7345774/trump-iran-tariffs-trade-china-india-uae-turkiye-brazil/

2. US sanctions Iran: Additional 25% tariffs to have minimal impact on India, say government sources - here's why — https://timesofindia.indiatimes.com/business/india-business/us-sanctions-iran-additional-25-tariffs-to-have-minimal-impact-on-india-say-government-sources-heres-why/articleshow/126506774.cms

3. Trump says nations doing business with Iran face 25% tariff on US trade — https://www.reuters.com/world/middle-east/trump-says-countries-doing-business-with-iran-face-25-tariff-2026-01-12/

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.