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Trump pressures Iran with tariffs that could raise prices in the US

News

Trump pressures Iran with tariffs that could raise prices in the US
News

News

Trump pressures Iran with tariffs that could raise prices in the US

2026-01-14 10:43 Last Updated At:17:39

WASHINGTON (AP) — President Donald Trump has once again drawn his go-to diplomatic weapon — tariffs, this time to coerce the Iranian government to end its bloody crackdown on nationwide protests.

Trump said in a social media post on Monday he would impose a 25% tax on imports to the United States from countries that do business with Iran. The sanctions could hurt the Islamic Republic by reducing its access to foreign goods and driving up prices, which would likely inflame tensions in a country where inflation is running above 40%.

But the tariffs could create blowback for the United States, too, potentially raising the prices Americans pay for imports from Iranian trade partners such as Turkish textiles and Indian gemstones and threatening an uneasy trade truce Trump reached last year with China.

The death toll from the latest protests in Iran surpassed 2,500 as of Wednesday, activists said, as the hard-line Islamist government attempts to tamp down dissent against economic hardship and political repression.

The Trump administration has offered scant details since announcing the new tariffs targeting Iran. For instance, the White House has not said whether the taxes would be stacked on top of double-digit levies Trump imposed last year on almost every country on Earth. Or whether he would exempt some energy imports as he has in the past.

It's also unclear what legal authority the president is relying on to impose the import taxes. He invoked the 1977 International Emergency Economic Powers Act to justify his most sweeping tariffs last year. But businesses and several states have gone to court arguing that Trump overstepped his authority in doing so. The Supreme Court is hearing the case and could throw out Trump's tariffs and force him to send refunds to the U.S. importers that paid them.

Years of sanctions aimed at stopping Iran's nuclear program have left the country isolated. But it still did nearly $125 billion in international trade in 2024, including $32 billion with China, $28 billion with the United Arab Emirates and $17 billion with Turkey, according to the World Trade Organization.

Iran bought more than $6 billion worth of imports from the European Union that year. Russia and India also do considerable business with Iran. Energy dominates Iran's exports. Its top imports include gold, grain and smartphones.

Trump's attempt to pressure Iran is likely to cause collateral damage. Most prominently, his tariffs could upend his attempts to maintain a trade peace with China.

Last spring, the United States and China hammered each other with triple-digit tariffs, threatening to end trade between the world's two biggest economies and briefly panicking global financial markets. The two countries spent the rest of year trying to deescalate their trade conflict, reaching a truce in October that reined in tariffs, ended China's boycott of American soybeans and eased its restrictions on exports of rare-earth minerals and technologies critical for fighter jets, robots and other products.

The new tariffs, aimed at punishing Iran, would hit China because of its trade ties with Tehran. “President Trump’s threat to increase tariffs by 25% against China and other trading partners due to developments in Iran underscores just how fragile the U.S.-China trade truce is,” said former U.S. trade negotiator Wendy Cutler, now senior vice president at the Asia Society Policy Institute. "Even if he does not actually implement the tariff hike, damage has already been done. This threat erodes trust between the U.S. and China which is already at a low level.''

Adnan Mazarei, a nonresident senior fellow at the Peterson Institute for International Economics, doubts that the tariffs would persuade the Iranian government to ease its crackdown on protesters.

“I do not think this is going to be very successful,'' said Mazarei, a former deputy director of the International Monetary Fund with crisis-fighting experience in the Middle East. ”They will not for this alone change their views or their practices. It is a repressive regime, and it is willing to pay a high cost in terms of people’s blood to stay in power.''

FILE - President Donald Trump, left, and Chinese President Xi Jinping, look at each other after their summit meeting at Gimhae International Airport Jinping in Busan, South Korea, Oct. 30, 2025. (AP Photo/Mark Schiefelbein, File)

FILE - President Donald Trump, left, and Chinese President Xi Jinping, look at each other after their summit meeting at Gimhae International Airport Jinping in Busan, South Korea, Oct. 30, 2025. (AP Photo/Mark Schiefelbein, File)

FILE - President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

FILE - President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

Shops are closed during protests in Tehran's centuries-old main bazaar, Iran, Tuesday, Jan. 6, 2026. (AP Photo/Vahid Salemi)

Shops are closed during protests in Tehran's centuries-old main bazaar, Iran, Tuesday, Jan. 6, 2026. (AP Photo/Vahid Salemi)

Iran's top judge hinted at fast trials and executions for those who were detained in nationwide protests against the country's theocracy, even as activists said Wednesday that the death toll rose to levels unseen in decades with at least 2,572 people killed so far.

Iran’s judiciary chief Gholamhossein Mohseni-Ejei made the comments about trials and executions in a video Tuesday, despite a warning from U.S. President Donald Trump that he would “take very strong action” if executions take place.

The U.S.-based Human Rights Activists News Agency said the number of dead climbed to at least 2,571 early Wednesday. The figure dwarfs the death toll from any other round of protest or unrest in Iran in decades and recalls the chaos surrounding the country’s 1979 Islamic Revolution.

After Trump was informed on the number of deaths, he warned Iran's leaders that he was terminating any negotiations and would “act accordingly.”

Details of the crackdown began emerging Tuesday as Iranians made phone calls abroad for the first time in days after authorities severed communications countrywide when the protests broke out.

Here is the latest:

Major Middle East governments were discouraging the Trump administration from waging a war with Iran, fearing “unprecedented consequences” in the volatile region, an Arab Gulf diplomat said Wednesday.

The Cairo-based diplomat said major governments in the region including Turkey, Egypt, Saudi Arabai and Pakistan have been “in constant contact” with the U.S. administration over a potential American strike on Iran that could explode into a “full-blown war.”

Such a war will “certainly” have dire repercussions “not only on the Middle East but also on the global economy," he said.

Iran and its proxies, the Houthis and the Iraqi militias, could strike back, targeting “not only American assets, but also oil facilities and maritime routes," he said.

Iranian state television said Wednesday’s mass funeral in Tehran would include 300 bodies of security force members and civilians. The funeral is expected to take place at Tehran University under heavy security.

The Human Rights Activists News Agency, which is tracking the death toll, said more than 2,550 people have been killed, 2,403 protesters and 147 government-affiliated.

Twelve children were killed, along with nine civilians it said were not taking part in protests. More than 18,100 people have been detained, the group said.

Gauging the demonstrations and the death toll from abroad has grown more difficult and The Associated Press has been unable to independently assess the toll given the communications being disrupted in the country.

Melanie Lidman contributed from Jerusalem.

Trump’s decision to impose a 25% tariff on countries that trade with Iran could impact India, an expert said, as New Delhi already faces existing 50% U.S. trade levies due its purchases of Russian oil.

Abhijit Mukhopadhyay, a senior economist at the Chintan Research Foundation in New Delhi, said the bigger risk is not India-Iran trade, but India’s access to the U.S. market as its exports to Iran are modest.

India mainly exports rice, tea, sugar, pharmaceuticals and electrical machinery to Iran, while importing dry fruits and chemical products. Textiles and garments, gems and jewelry and engineering goods are likely to be the most vulnerable sectors, he said.

Trump’s latest move also could affect India’s investments in Iran including the strategically important Chabahar port, which gives India a trade route to Afghanistan, Central Asia and Europe while bypassing Pakistan, Mukhopadhyay said.

Iran’s judiciary chief signals fast trials and executions for those detained in nationwide protests.

Gholamhossein Mohseni-Ejei made the comment in a video shared by Iranian state television on Wednesday.

He emphasized the need for swift action, saying delays would lessen the impact.

His remarks challenge Trump, who warned Iran about executions in an interview aired Tuesday.

Trump stated the U.S. would take strong action if Iran proceeded with executions. The situation highlights escalating tensions between the two countries over the handling of the protests.

Dozens of Pakistani students studying in Iran have returned home through a remote southwestern border crossing, a Pakistani immigration official said Wednesday.

Federal Investigation Agency spokesperson in Quetta city, Samina Raisani, said about 60 students crossed into Pakistan on Tuesday through Gabd border in Balochistan province with valid travel documents.

More students were expected to return through the same crossing later Wednesday, she said.

Mudassir Tipu, Pakistan’s ambassador to Iran, said Tuesday that Iranian universities had rescheduled exams and permitted international students to leave the country.

The satellite internet provider Starlink now offers free service in to people Iran who have access to the company's receivers, activists said Wednesday.

Mehdi Yahyanejad, a Los Angeles-based activist who helped get the units into Iran, told The Associated Press that the free service had started. Other activists also confirmed in messages online that the service was free.

Starlink has been the only way for Iranians to communicate with the outside world since authorities shut down the internet Thursday night as nationwide protests swelled and they began a bloody crackdown against demonstrators.

Starlink did not immediately acknowledge the decision.

This frame grab from videos taken between Jan. 9 and Jan. 11, 2026, and circulating on social media purportedly shows images from a morgue with dozens of bodies and mourners after crackdown on the outskirts of Iran's capital, in Kahrizak, Tehran Province. (UGC via AP)

This frame grab from videos taken between Jan. 9 and Jan. 11, 2026, and circulating on social media purportedly shows images from a morgue with dozens of bodies and mourners after crackdown on the outskirts of Iran's capital, in Kahrizak, Tehran Province. (UGC via AP)

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