By Catherine Lucey (Bloomberg) – President Donald Trump has granted his administration the authority to impose tariffs on goods from countries that conduct trade with Iran, but he has not implemented any new tariffs just yet.
On Friday, Trump signed an executive order stating that tariffs "may be imposed on goods imported into the United States from any country that directly or indirectly purchases, imports, or acquires any goods or services from Iran."
Trump first hinted at these tariffs on social media in mid-January, claiming they would take effect immediately. However, no official document outlining the policy was released until Friday. This action could significantly impact major trading relationships for the US, affecting countries like India, Turkey, and China.
The order allows the secretaries of State and Commerce to work together to determine if any countries meet the criteria for these tariffs. Once a decision is made, they, along with the Office of the US Trade Representative and the Department of Homeland Security, will decide how high the tariff should be.
Trump did not mention a specific tariff rate but used the example of a 25% rate he initially threatened against Iran's trading partners.
Earlier Friday, Iran and the US conducted their first face-to-face talks in Oman to ease tensions between Washington and Tehran and to prevent a military conflict.
The recent turmoil in Iran has been driven by weeks of mass protests. Initially sparked by a currency crisis and worsening economic conditions, the protests have increasingly targeted the government. This has become the most significant challenge to Iran's ruling system since 1979.
Trump has supported the protesters and threatened military action if Iran's leaders continue to suppress the demonstrations violently. Last month, he expressed relief that Iranian authorities decided against executing prisoners, seemingly delaying an attack on Iran. Meanwhile, a large US Navy strike group has been deployed to the region in case any action is necessary.