Trump signs order threatening tariffs on countries trading with Iran: Here’s what it means
The order sets a framework for tariffs on Iran-linked trade, citing 25% as an example rate
US President Donald Trump on Friday signed an executive order establishing a framework to impose tariffs on countries that continue to do business with Iran.
The order does not immediately levy duties but sets the process for enforcement.
Also Read: Iran–US talks in Oman: What we know so far
The White House said on X: “President Donald J. Trump signs an Executive Order confronting the Iranian regime, establishing a process to impose tariffs on countries that continue purchasing goods or services from Iran.”
The order notes that tariffs “may be imposed on goods imported into the United States that are products of any country that directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran.”
Trump had first threatened such duties on social media in mid-January, but no formal directive was issued until Friday.
US-Iran talks in Oman
Earlier Friday, US and Iranian officials met in Oman for their first in-person talks since June, when the US struck Iran’s nuclear facilities. The Iranian delegation was led by Foreign Minister Abbas Araghchi, while the US side included special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner.
Speaking from Air Force One, Trump described the talks as “very good,” adding that Iran “looks like it wants to make a deal very badly.” He warned: “If they don’t make a deal, the consequences are very steep,” and confirmed another meeting is scheduled for next week.
Araghchi called the discussions “a good start” and said a “positive atmosphere prevailed,” noting that negotiators had returned to their capitals for consultations.
Potential global impact
Analysts say the order could affect major US trading partners, including India, Turkey, and China.
It empowers the Secretaries of State and Commerce to determine if countries meet the criteria, and—together with the US Trade Representative and Department of Homeland Security—to decide the extent of tariffs.
Trump cited 25% as an example of a potential rate but did not set a firm figure.
US lifts 25% tariff on Indian goods
In a related trade move, Trump lifted a 25% tariff on Indian imports previously imposed over purchases of Russian oil, implementing a new US-India trade deal.
The pact reduces tariffs on Indian goods to 18%, removes duties on certain aircraft and parts, and outlines $500 billion in Indian purchases of US energy, technology, and industrial products over five years.
India has pledged to stop directly or indirectly importing Russian oil and will buy US energy products, strengthening bilateral ties. The deal also restores close relations between Trump and Prime Minister Narendra Modi, whom Trump calls “one of my greatest friends.”
Wendy Cutler, senior vice president at the Asia Society Policy Institute, noted that the 18% tariff gives Indian exporters a slight advantage in the US market over regional competitors, whose duties range from 19–20%.
Trump signs executive order: Here’s what it means for global trade with Iran
Builds on 1995 Executive Order 12957, which declared Iran a threat to US security, foreign policy, and economy.
Subsequent orders expanded sanctions on Iran’s energy, petrochemical sectors, human rights abuses, and destabilising activities.
New information confirms the threat persists, largely originating outside the US.
Key provisions
Establishes a process to impose additional tariffs on countries trading with Iran.
Example rate: 25% ad valorem; final rate decided by the President after recommendations.
Secretary of Commerce identifies countries meeting the criteria; Secretary of State, in consultation with Treasury, Commerce, Homeland Security, and US Trade Representative, determines tariff application.
Tariffs can be modified in response to new information, retaliation, or actions by Iran or other countries aligned with US interests.
Monitoring and implementation
Secretary of State monitors developments and advises the President.
Secretary of Commerce tracks foreign purchases of Iranian goods/services.
Secretaries of State, Commerce, and US Trade Representative have authority to implement the order; agency heads may take necessary measures.
Definitions and scope
“Goods or services from Iran” include items US persons are prohibited from trading with.
“Indirect” purchases cover items obtained via intermediaries or third countries traceable to Iran.
Covers all Iranian territory, waters, and entities acting on behalf of the government, including the IRGC.
Effective date and legal notes
Order takes effect 12:01am EST, February 7, 2026.
Invalid provisions do not affect the rest of the order.
Does not create enforceable legal rights against the US; implementation subject to law and appropriations.
