Following his previous social media threat, President Trump issued an Executive Order this evening, February 6, establishing a process to apply ad valorem tariffs at an unspecified rate of duty on “any country that directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran.” Such tariffs can be made effective as early as 12:01 a.m. EST February 7, 2026, following completion of the new process described below. 

The action was taken pursuant to the International Emergency Economic Powers Act (“IEEPA”) and the National Emergencies Act, following the President’s determination that the Government of Iran’s conduct constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.

Similar to the recently established process to impose tariffs on countries supplying oil to Cuba, the new Iran tariff process requires the Secretary of Commerce to determine whether a foreign country “directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran.” Commerce must formally notify the Secretary of State and provide supporting information when an affirmative determination is made.

The Secretary of State, in consultation with the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, and the United States Trade Representative, shall then determine whether and to what extent an additional ad valorem rate of duty should be imposed on goods that are products of the foreign country.  

If a determination is made to apply new tariffs, the Secretary of State must notify the President, who will then make the final decision of whether to apply ad valorem tariffs on that foreign country, and at what rate of duty.

Per data from the World Trade Organization and Trade Data Monitor, Iran’s top trading partners include the United Arab Emirates, China, Turkey, the European Union, India, and Iraq.