US President Donald Trump said on Monday that any country doing business with Iran will face a tariff rate of 25 per cent on trade with America.
The announcement comes as Mr Trump is considering his response to the Iranian government's crackdown on widespread protests in the country. The White House has confirmed that the response could be military in nature.
Mr Trump said in a Truth Social post that tariffs would affect “any and all business being done with the United States of America”, adding that the order is “final and conclusive”.
Iran has been rocked by nationwide demonstrations over the past few weeks. The protests were initially sparked by price increases and a sharp deterioration in Iran's economic situation, but have expanded to include wider demands for political change.
US-based Human Rights Activists News Agency has reported that almost 600 people have been killed amid the demonstrations. Officials have blamed the protests on US and other foreign influences.
It is not yet clear how the Trump administration will impose the tariffs.
Mr Trump has said the US may meet Iranian officials and that he is in contact with Iran's opposition, while piling pressure on its leaders, including threatening military action.
Tehran said on Monday it is keeping communication channels with Washington open.
While air strikes are one of many alternatives open to Mr Trump, “diplomacy is always the first option for the President”, White House press secretary Karoline Leavitt said on Monday.
Mr Trump has made tariffs one of the cornerstones of his second administration, introducing levies on trading partners around the world in April. But this policy is under legal pressure as the Supreme Court is considering striking down many of them.
Iran, a member of the Opec oil producers group, exported products to 147 trading partners in 2022, according to World Bank's most recent data.
