Here's how US sanctions have added to Iranian discontent
Iranians continue to protest in the streets as Trump's new tariffs push prices higher and worsen public frustration with the government’s economic failures.
President Donald Trump announced on Monday that any country continuing to do business with Iran will face a 25 percent tariff on all trade with the US, a move intended to heighten economic pressure on Tehran amid unrest.
Trump made the declaration in a post on Truth Social, saying that it is “final and conclusive,” but he did not provide official implementation details or legal grounding from the White House.
The announcement comes as widespread, deadly protests driven by years-long economic despair and political discontent continue across Iran.
Around 2,000 Iranians, including security personnel, have been killed since demonstrations began in late December.
Trump’s tariff move has added fuel to the fire as Iran’s national currency, the rial, has collapsed to historic lows, trading at more than 1.4 million to the US dollar.
Inflation has soared past 40 percent, triggering sharp rises in the price of food, medicine and other essentials.
The frustration first erupted among traders in Tehran’s historic Grand Bazaar, the financial pulse of the nation, where shopkeepers closed their businesses to protest currency instability and the mounting cost of living.
Widespread anger against the leadership and economic mismanagement, with many bazaar merchants tied to political elites and state economic power, has fueled ongoing protests.
Iran restrictions
Iran has already been hit by US and European sanctions over Tehran’s nuclear enrichment programme and its support of militias in the region.
The US measures have already cut oil-rich Iran off from the global banking system and SWIFT, leaving China as its only major trade partner, purchasing about 90 percent of Iranian crude.
While the 2015 nuclear deal or Joint Comprehensive Plan of Action — signed between UN permanent members and Germany and Iran — officially expired in October 2025, the US and European powers reactivated “snapback” mechanisms to restore pre-2015 restrictions, citing Iran’s continued uranium enrichment.
Despite earning roughly $193.5 billion in oil revenue over the past five years, Iran’s GDP has shrunk from $600 billion to $356 billion in 2025, according to International Monetary Fund statistics.
Iranian citizens have grown frustrated as sanctions and tariffs make it harder for businesses to operate and for essential goods to reach consumers.
Trump’s broader maximum pressure policy with a new tariff regime is expected to make imports more expensive and restrict Iran’s already limited access to global markets.
‘No winners in tariff war’
Additional tariffs also signal that international partners may face a tough choice between trading with Iran or risking greater costs on goods exported to the US.
China, one of the major trade partners of Iran, has said it would protect its rights and interests against Trump’s tariffs.
"We have always believed that there are no winners in a tariff war, and China will resolutely safeguard its legitimate rights and interests," foreign ministry spokesperson Mao Ning said on Tuesday.
India, already affected by existing American tariffs, could face a 75 percent duty on its exports to Iran.
In 2024–25, India exported $1.24 billion to Iran and imported around $440 million, says its Tehran embassy.
Washington and Tehran say diplomatic channels are open. However, both sides are flexing their muscles for a potential showdown.
The Trump administration dropped several bombs on Iran’s Natanz and Fordow nuclear facilities amid fighting with Israel in June. Trump is now saying that all options are on the table.
A wave of unemployment and reduced economic activity has intensified calls for political change in Iran.