President Donald Trump has warned countries trading with Iran that Washington will impose a 25% tariff on goods exported to the US, and that punitive duties are “effective immediately”.
Writing on his personal platform, Truth Social, he said: “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.”
The latest tariff development out of Capitol Hill comes in the wake of South Africa persuading Iran to downgrade its role from active participant to observer in the ‘Will for Peace’ naval exercises in False Bay, headed up by China and including Russia.
It also comes amid mounting pressure from the US, as Pretoria seeks to avoid straining relations further with Washington.
Prior to Trump’s latest threat, Iranian vessels had already arrived but withdrew before drills began on January 9.
Reuters reports that the US President said the tariff order “is final and conclusive”.
“There was no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use to impose the tariffs, or whether they would be aimed at all of Iran's trading partners.”
Tehran, currently in the grip of ongoing violent protests against the government of Supreme Leader Ayatollah Ali Khamenei, said on Monday that it was keeping communication channels with Washington open as Trump considered how to respond to the situation in Iran.
For South Africa, Trump’s latest tariff position adds more complexity to the African Growth and Opportunity Act, which has been extended by the Republican-led House of Representatives (see related report posted on January 13).
Although the Democrat-led Senate must still approve the Act, it’s widely regarded as protection for South African exports to the US, worth R157 billion to the United States.
Compared with imported US goods worth R120 billion over the last year, translating into a trade surplus of R36 billion, South Africa’s combined trade with Russia and Iran is negligible.
It includes trade with Palestine, with which South Africa has aligned itself, Business Tech writes.
