Donald Trump (former US president) has also warned other nations that if they conduct commerce with Iran, they are at risk for being charged an immediate 25% tariff from the United States. On his account, the former president posted this information on his social media (Truth Social).
According to the post, the order will be ‘decisive’. There has been no mention of the timing or manner in which these tariffs will be enacted.
White House Gives No Further Details
Following President Trump’s comments regarding the renegotiation of international trade agreements, there has been no additional guidance provided by the White House with regard to the potential impact on certain countries or specific goods that may be subject to increased tariffs as a result of elevated trade relations between Iran and the US.
This uncertainty creates concern within the business communities of numerous nations trading with Iran as well as the USA due to their respective ties to both economies, especially when discussing matters related to the energy and shipping industries.
Iran’s Currency Crisis Deepens
At the same time that Iran is experiencing a significant economic crisis due to the value of the national currency (the rial) dropping significantly over the last 12 months and recently reaching an all-time low in value against the US dollar, inflation is currently above 40%, and the cost of essential items is also increasing dramatically.
As a result, for many households, the cost of living on a day-to-day basis has become impossible to manage.
Protests Spread Across Iran
The growing public anger over increased prices and high numbers of job losses caused protests throughout Iran. At the end of December 2022, many local shop owners in Tehran closed their shops and marched in protest because of yet another sharp decline in the value of the Iranian currency, the rial.
Originally protests focused solely on economic issues, but claims of economic injustice and systemic abuse of political power have now evolved into larger demonstrations that challenge Iran’s Supreme Leader Ayatollah Ali Khamenei and his regime. These recent events represent some of the most serious challenges faced by the Iranian government in recent years.
Deaths, Arrests, and Information Blackout
Human rights organisations state that there has been a significant crackdown on protestors. The US non-profit group Human Rights Activist News Agency indicates that approximately 500 people who were protesting and 48 members of the security forces were killed; however, many other organisations indicate that the actual death count could be much higher. Thousands of individuals have been arrested as well. Since Thursday night, an internet blackout has made it difficult to verify facts. Many countries’ media, including BBC and Reuters, cannot get reliable news from within Iran.
Although Donald Trump warned of future sanctions, he also stated that the Iranian government reached out to him about negotiating; however, increased international sanctions and significant corruption continue to have a negative impact on the Iranian economy.