US President Donald Trump has announced a 25% tariff on all trade with the US for any country trading with Iran, in a major escalation of his tariff policy following unrest in the Middle East country.
In a post on his Truth Social account, he said the order is “final and conclusive” and effective immediately.
The move will rock relations with China, which bought on average 1.38 million barrels per day of Iranian oil last year, although its LNG volumes were negligible as sanctions, lack of investment and infrastructure challenges have hindered Iran’s development of an export industry.
A spokesperson for the Chinese embassy in Washington stated that China “opposes any illicit unilateral sanctions and long-arm jurisdiction” and will take “all necessary measures” to protect its interests.
India’s total bilateral trade with Iran stood at $1.34bn for the first 10 months of 2025, according to its commerce ministry.
The UAE and Iran have significant bilateral trade too, while Germany’s exports to Iran were $1.34bn in 2024, according to United Nations data.
Iran holds 3.8 billion metric tonnes of iron ore, around 2% of global reserves, and also has significant reserves of copper, zinc and bauxite.
“The country’s metal production has grown in recent years after considerable investments in the industry with key exports of steel, copper, iron ore and zinc to countries in Asia, Europe and the Middle East,” notes S&P Global.