Wednesday Jan 14, 2026
Wednesday Jan 14, 2026
Wednesday, 14 January 2026 05:53 - - {{hitsCtrl.values.hits}}
Donald Trump
US President Donald Trump said the United States would impose a 25% tariff on trade with any country that continues commercial dealings with Iran, raising questions over potential spill over effects on countries with limited but sanctioned trade ties.
“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25%, on any and all business being done with the United States of America,” Trump said in a post on TruthSocial.com. “This Order is final and conclusive.”
The announcement comes amid renewed unrest in Iran following another sharp fall in the riyal, which has pushed inflation higher. Trump has previously warned Tehran of consequences if security forces used violence against protesters.
Sri Lanka exports tea to Iran under a long-standing arrangement that permits food exports despite US sanctions. It remains unclear whether the proposed tariff regime would extend to food items traded under such exemptions, which represents the principal channel of potential risk for Sri Lanka.
According to the Export Development Board, Iran was Sri Lanka’s 34th largest export destination in 2024. Total exports to Iran rose by 57% year-on-year to $ 67.8 million, while imports from Iran declined by 63% to $ 2.48 million, making Iran the 76th largest source of imports.
Tea accounted for nearly 89% of Sri Lanka’s exports to Iran, reflecting Iran’s role as a niche but price-sensitive market rather than a systemically important one. While Iran increased direct tea imports sharply in 2024 under the bilateral trade arrangement, the overall scale of trade suggests that even a disruption would have a marginal impact on Sri Lanka’s broader export sector.
