New U.S. Tariffs on Iran Take Effect as Trump Administration Tightens Economic Pressure

February 07, 2026

The United States imposed a fresh round of sweeping tariffs on Iranian imports and related entities effective midnight Saturday, targeting key sectors including petrochemicals, metals, textiles, and consumer goods. President Donald Trump signed the executive order Friday evening, describing the measures as necessary to choke off revenue streams supporting Iran's nuclear program, ballistic missile development, and regional proxy activities.

The tariffs range from 25 percent to 100 percent on approximately $12 billion worth of annual Iranian-origin goods entering the United States or transiting through U.S.-controlled financial systems. Secondary sanctions were expanded to cover foreign companies that continue to purchase Iranian crude oil or petrochemical products above certain thresholds.

Scope and Immediate Impact

The new duties cover:

• All Iranian-origin petrochemicals and derivatives (100 percent tariff)
• Steel, aluminum, copper, and other base metals (50 percent)
• Textiles, carpets, and finished consumer goods (35 percent)
• Agricultural products and processed foods (25 percent)

Treasury Secretary Scott Bessent confirmed that the Office of Foreign Assets Control (OFAC) simultaneously designated an additional 47 entities and individuals linked to Iran's Islamic Revolutionary Guard Corps (IRGC) and its overseas financing networks. Any foreign financial institution facilitating significant transactions with these entities now faces potential exclusion from the U.S. financial system.

Administration officials stated the measures aim to reduce Iran's oil export revenues by an estimated 40 percent within the first year while minimizing direct impact on global energy markets through targeted exemptions for humanitarian trade.

Rationale and Timing

Trump cited Iran's continued uranium enrichment beyond civilian needs, recent missile tests, and support for groups including Hezbollah, the Houthis, and certain Iraqi militias as direct justifications. He referenced stalled nuclear negotiations and recent military posturing in the Gulf as evidence that economic pressure must intensify.

The tariffs arrive amid a broader U.S. strategy that combines military deterrence (including the ongoing carrier strike group deployment in the Arabian Sea) with economic isolation. Senior officials emphasized that the measures are reversible if Iran returns to meaningful negotiations and meets verifiable benchmarks on nuclear and missile programs.

International and Market Reactions

Iranian Foreign Minister Abbas Araghchi condemned the tariffs as "economic warfare" and vowed retaliatory steps, including potential restrictions on shipping through the Strait of Hormuz. Tehran has already signaled it may accelerate enrichment activities or activate previously dormant proxy fronts in response.

Oil prices ticked higher by about 2 percent in early Asian trading Wednesday, reflecting trader concerns over possible supply disruptions despite assurances that the measures target revenue rather than physical flows. The U.S. dollar strengthened modestly against emerging market currencies.

European Union foreign policy chief Josep Borrell expressed regret over the unilateral action, noting it complicates ongoing diplomatic efforts. China, Iran's largest oil customer, has not yet commented officially but is expected to continue purchases through non-dollar channels.

Domestic and Political Response

Republican lawmakers largely endorsed the move, with House Foreign Affairs Committee Chairman Michael McCaul calling it "long overdue accountability." Some Democrats criticized the timing and scope, warning of unintended humanitarian consequences and potential escalation without a clear diplomatic offramp.

The tariffs build on existing sanctions frameworks but represent the most comprehensive new economic measures against Iran since the administration's return to office. White House officials indicated additional designations and sectoral restrictions could follow if Tehran does not alter its course.

As the measures take effect, global markets and regional capitals watch closely for Iran's response and any signs of renewed back-channel contacts. The coming weeks will test whether intensified economic pressure forces concessions or deepens the standoff between Washington and Tehran.