What countries do business with Iran, and what could new US tariffs mean? US President Donald Trump has threatened to impose a 25% tariff on trade with the United States for any country doing business with Iran, a move that comes as Iran cracks down on anti-government protests, with thousands feared dead. Trump has a history of using tariffs as a pressure tactic. What's the situation? On Truth Social, Trump declared, 'Effective immediately, any country doing business with Iran will face a 25% tariff on trade with the US. This order is final and conclusive.' He hasn't provided further details. Which countries trade with Iran? China is Iran's largest export partner, purchasing over $14 billion in products in the year to October 2025. Other major customers include Iraq, the United Arab Emirates, and Turkey, with exports to Turkey nearly doubling from $4.7 billion in 2024 to $7.3 billion last year. Iran's top exports are fuel-related, with food imports including pistachios, tomatoes, and staples like corn, rice, sunflower seeds, oils, and soybeans. Iran's biggest import is gold, with imports valued at $6.7 billion in the 12 months to October, up from $4.8 billion the previous year. How might the tariff be implemented? The White House hasn't specified how the tariff would work in practice or which countries it would apply to. It's unclear if it would cover all countries trading with Iran or just its biggest partners. The 25% tax might be imposed on top of existing Trump administration tariffs, and the US hasn't specified the legal basis for the new tariff, which could be challenging to enforce. Iran's shadow fleet and sales in Chinese yuan make oil exports difficult to track. How might this affect US-China relations? Trump's announcement risks reigniting the US-China trade conflict. Chinese goods already face an average 30.8% tariff, so it's unclear if the new 25% tariff would be imposed in addition or with allowances. China has previously pushed back against US actions, including introducing tariffs and restricting rare earth exports, which the US needs for tech industries. Introducing a new 25% tariff on China now would be provocative, and Beijing has warned of measures to protect its interests. What's happening with Iran's economy? Iran's oil reserves make it a top 10 oil producer, but mismanagement, falling oil sales, and international sanctions have crippled its economy. Many Iranians struggle to afford basics, and the cost of living is a key protest issue. Household spending has fallen, and government restrictions on women's work have reduced the employment rate to around 37%. High inflation, which hit 48.4% in October, makes imports expensive, and under-investment in electricity and water systems undermines government production goals. Reducing fuel subsidies and potential trade restrictions due to tariffs could further increase inflation and push the economy closer to collapse.
