Donald Trump has made another announcement via Truth Social that could once again significantly affect global trade. In an attempt to show his unwavering support for Iranian protesters, Trump has threatened a 25% tariff on countries such as China and India that continue to do business with Iran.
China remains America’s biggest global competitor when it comes to goods produced and exported. Even during Trump’s first wave of sweeping tariffs, he was forced to hold special negotiations with the country to protect jobs and consumers on a state-by-state basis. That context is what made Trump’s Truth Social post particularly surprising. He wrote, “Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America.”
