Countries doing business with Iran will face a 25 per cent additional tariff on trade with US: Trump

Washington: US President Donald Trump on Monday announced that countries doing business with Iran will face a 25 per cent additional tariff on trade with the United States, signalling a tougher approach toward Tehran and its international partners. 

For India, this implies a whopping 75 per cent tariff on all its products being exported to the United States, a development that might badly impact Indian businesses.

“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent on any and all business being done with the United States of America,” Trump said in a social media post.

“This Order is final and conclusive,” he added. “Thank you for your attention to this matter!”

The statement did not spell out how the tariff would be applied or which sectors would be affected.

Earlier in the day, the White House said Trump is pursuing diplomatic engagement with Iran while keeping military options firmly on the table, as protests continue inside the country and back-channel communications signal a different tone from Tehran.

White House Press Secretary Caroline Leavitt said the President’s objective remains focused on preventing further violence while assessing private outreach from Iranian officials.

“He certainly doesn't want to see people being killed in the streets of Tehran, and unfortunately, that's something we're seeing right now,” Leavitt told reporters during a gaggle at the White House.

Asked whether the administration is still seeking complete denuclearization, Leavitt did not outline specific terms but stressed the President’s flexibility and readiness to escalate if necessary.

“One thing President Trump is very good at is always keeping all of his options on the table, and airstrikes would be one of the many, many options that are on the table for the Commander in Chief,” she said.

At the same time, she emphasised diplomacy remains the administration’s first approach.

“Diplomacy is always the first option for the President,” Leavitt said, adding that messages being received privately from Iran differ from what the regime is saying publicly.

“What you're hearing publicly from the Iranian regime is quite differently from the messages the administration is receiving privately, and I think the President has an interest in exploring those messages,” she said.

Leavitt said Special Envoy Steve Witkoff continues to play a central role in Iran diplomacy.

“I understand that Steve Witkoff will continue to be a very important player in diplomacy with respect to Iran,” she said.

She also underscored that Tehran is aware of the President’s past actions and willingness to act decisively.

“However, with that said, the President has shown he's unafraid to use military options if and when he deems necessary, and nobody knows that better than Iranians,” Leavitt said.

The comments come amid heightened tensions following unrest in Iran and renewed scrutiny of US strategy toward the Islamic Republic.