Trump Imposes Tariffs to Pressure Iran Amidst Nationwide Protests
President Donald Trump has announced a new round of tariffs aimed at influencing Iran’s response to ongoing protests within its borders. In a social media statement, Trump declared a 25% tariff on imports from nations engaging in trade with Iran, a move designed to restrict Iran’s access to foreign goods, potentially exacerbating the country’s already high inflation rate, which exceeds 40%.
This tariff strategy, however, may have repercussions for the United States. American consumers could face increased costs for products imported from Iran’s trading partners, including Turkish textiles and Indian gemstones. Additionally, this move risks unsettling a fragile trade agreement with China established last year.
As reported by activists, the death toll from the recent protests in Iran has surpassed 2,500, highlighting the severity of the government’s crackdown on dissent related to economic and political grievances.
The Trump administration has yet to clarify several aspects of the new tariffs, including whether they would be added to the existing tariffs imposed globally last year and if there will be exemptions for certain energy imports, as previously granted.
The legal grounds for these tariffs also remain uncertain. Last year, Trump cited the 1977 International Emergency Economic Powers Act for imposing broad tariffs, a decision currently under scrutiny by the Supreme Court. The court’s decision could lead to the tariffs being overturned and possible refunds to U.S. importers.
Despite years of sanctions aimed at halting Iran’s nuclear ambitions, the country managed nearly $125 billion in international trade in 2024. Major trade partners include China ($32 billion), the UAE ($28 billion), and Turkey ($17 billion), according to the World Trade Organization. Iran’s key imports are gold, grain, and smartphones, while energy remains its primary export.
The tariff increase could disrupt Trump’s efforts to maintain a trade truce with China. Following a series of reciprocal tariffs last spring, the U.S. and China worked towards easing tensions, culminating in an October agreement that reduced tariffs and lifted China’s boycott of American soybeans.
However, the new tariffs could strain U.S.-China relations due to China’s significant trade with Iran. Wendy Cutler, a former U.S. trade negotiator and current senior vice president at the Asia Society Policy Institute, commented, “President Trump’s threat to increase tariffs by 25% against China and other trading partners due to developments in Iran underscores just how fragile the U.S.-China trade truce is.”
Experts like Adnan Mazarei, a senior fellow at the Peterson Institute for International Economics, are skeptical about the effectiveness of these tariffs in changing the Iranian government’s actions. Mazarei stated, “I do not think this is going to be very successful. They will not for this alone change their views or their practices. It is a repressive regime, and it is willing to pay a high cost in terms of people’s blood to stay in power.”
