Donald Trump announces additional 25 per cent tariff over Iran trade

US President Donald Trump on Monday unfurled a fresh layer of economic pressure on Iran, declaring that any country maintaining commercial ties with Tehran would now be penalised with a steep 25 per cent additional tariff on all trade with the United States — a move that sharply raises the stakes for Iran’s global partners.

For India, the announcement carries potentially severe consequences. With existing duties already in place, Indian exports to the US could effectively face tariffs as high as 75 per cent, a blow that threatens to rattle key sectors and deepen uncertainty for Indian businesses dependent on the American market.

“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 wrote in a characteristically blunt social media post, underscoring the finality of the decision. “This Order is final and conclusive,” he added, signing off with a terse: “Thank you for your attention to this matter!”

Notably, the declaration offered little clarity on how the sweeping tariff would be enforced or which industries might bear the brunt of the punishment, leaving governments and corporations scrambling to assess the fallout.

The tariff threat comes even as the White House insists that diplomacy with Tehran remains alive — albeit under the shadow of force. Earlier in the day, officials said the administration is pursuing diplomatic engagement with Iran while keeping military options “firmly on the table,” against the backdrop of intensifying protests inside the country and a flurry of discreet communications from Iranian intermediaries.

White House press secretary Caroline Leavitt told reporters that President Trump’s immediate focus is on preventing further bloodshed in Iran, even as Washington evaluates private messages that suggest a more conciliatory tone from Tehran than its public rhetoric.

“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 said during a gaggle at the White House.

Pressed on whether the administration remains committed to Iran’s complete denuclearisation, Leavitt avoided spelling out red lines, instead highlighting the President’s trademark unpredictability — and his willingness to escalate if diplomacy falters.

“One thing President Trump is very good at is always keeping all of his options on the table,” she said, adding that airstrikes remain among the “many, many options” available to the Commander-in-Chief.

At the same time, she stressed that dialogue, not destruction, remains Trump’s preferred path. “Diplomacy is always the first option for the President,” Leavitt said, noting that private communications from Iranian officials differ markedly from the defiant posture Tehran projects in public.

“What you're hearing publicly from the Iranian regime is quite differently from the messages the administration is receiving privately,” she said, adding that the president is keen to explore those signals.

Leavitt confirmed that special envoy Steve Witkoff continues to play a central role in shaping US outreach to Iran, even as tensions simmer.

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

Still, the White House made clear that Tehran is under no illusion about the President’s resolve. Trump, Leavitt noted, has repeatedly demonstrated that he is prepared to act decisively — and militarily — if he believes US interests are at stake.

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

The remarks come at a moment of heightened volatility, as unrest inside Iran and Washington’s sharpened rhetoric bring renewed scrutiny to the US strategy toward the Islamic Republic — and raise fresh questions about the global economic and geopolitical aftershocks that may follow.

With IANS inputs