US President Donald Trump has announced that any country conducting business with Iran will face a 25 percent tariff on all trade with the US, effective immediately. The statement was made via social media and framed as a response to ongoing anti-government protests in Iran.
The announcement comes against the backdrop of long-standing US sanctions on Iran, which have been in place for years and target a wide range of economic activities.
China warns against tariff escalation
In a rapid response, China criticized the proposed measure. Mao Ning, spokesperson for China’s Ministry of Foreign Affairs, said that Beijing’s position on tariffs is “consistent and clear”, reiterating that tariff wars have no winners.
She added that China will firmly safeguard its legitimate rights and interests. China is widely regarded as one of Iran’s closest economic and political partners.
Allies monitor situation
Other major US trading partners have reacted more cautiously. Japan and South Korea, both of which have trade agreements with the US, said they are closely monitoring the situation.
According to a report by Reuters, officials in both countries indicated that they would respond appropriately once the scope and practical implications of the US announcement become clearer.
Under Section 232 tariffs, iron and steel imports in the US are subject to 50 percent tariffs. It is worth noting that the Trump administration’s reciprocal tariffs of up to 40 percent on all imports of goods do not include iron and steel imports.