The President of the United States made a significant announcement this morning (AEDT), unveiling a new tariff policy aimed at Iran’s trading partners.

In a message shared on social media, he declared, “Starting immediately, any nation conducting business with the Islamic Republic of Iran will incur a 25 percent tariff on all transactions with the United States.”

He emphasized the decisiveness of the move by adding, “This order is final and binding. Thank you for your attention to this matter!”

Iran is already under extensive international sanctions but maintains substantial trade relationships with countries such as China, Russia, Brazil, and the United Arab Emirates.

Nonetheless, Iran also engages in smaller-scale trade with several Western countries, including Germany, Italy, and Australia.

According to the Department of Foreign Affairs and Trade, there was about $730 million in trade between Australia and Iran in 2024.

Even the United States itself does a small amount of trade with the Islamic Republic. 

In his social media post, Trump did not detail how exactly the new tariff will work.

Trump had previously said Iran wanted to negotiate with Washington in regard to the protests, which have escalated into nationwide demonstrations over the past three weeks, having started at two markets in Tehran in response to the plummeting local currency.

According to the US-based Human Rights Activists News Agency, almost 600 people have been killed in the protests, and more than 10,000 detained, although some estimates have put the death toll in the thousands.

The president has also threatened military action against Iran, and has been weighing options including cyberattacks and direct strikes by the US or Israel.

“The military is looking at it, and we’re looking at some very strong options,” Trump told reporters on Air Force One.

Asked about Iran’s threats of retaliation, he said: “If they do that, we will hit them at levels that they’ve never been hit before.”

– with Associated Press