Trump signs order threatening Iran tariffs on countries doing business with nation
President Donald Trump enabled his administration to apply tariffs on goods from countries doing business with Iran, but stopped short of immediately imposing any new duties.
US President Donald Trump signed an order on Friday threatening tariffs on countries doing business with Iran. The order sets the process for tariffs but does not impose them.
The White House posted on X, “President Donald J. Trump signs an Executive Order confronting the Iranian regime, establishing a process to impose tariffs on countries that continue purchasing goods or services from Iran.”
The executive order that Trump signed Friday said that the levy “may be imposed on goods imported into the United States that are products of any country that directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran.”
Trump had first threatened the duty on social media in mid-January, saying it would be effective immediately. But no paper was ever issued codifying the policy until Friday, Bloomberg reported.
The impact
Trump's move to sign an order threatening Iran tariffs has the potential to disrupt major US trading relationships across the globe, including with countries such as India, Turkey, and China.
As per Bloomberg, the order empowers the Secretaries of State and Commerce to determine if any countries have met the criteria jointly.
Once a finding is made, the policy empowers them — in conjunction with the Office of the US Trade Representative and Department of Homeland Security — to decide “to what extent an additional” tariff should be applied.
Trump did not specify a rate that would be imposed but uses the 25% rate that he first threatened on Iran’s trading partners as an “example.”
Iran and the US engaged in their first in-person talks earlier Friday in Oman, an effort to defuse tensions between Washington and Tehran and avert a military confrontation.
The source of the latest upheaval has been weeks of mass protests that have rocked the Islamic Republic.
Demonstrations were initially sparked by a currency crisis and worsening economic conditions but they became increasingly aimed at the regime. It’s amounted to the biggest challenge to the nation’s ruling system since 1979.
Trump has cheered on the protesters and threatened strikes if Iran’s leaders continued violently repressing the protests. Last month, he told reporters that he was glad authorities had decided not to execute prisoners, seemingly putting off an imminent attack on Iran. In the meantime, a large US Navy strike group has traveled to the region in the event of any action.
(With inputs from Bloomberg)