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Iran's Partners in Crisis after Trump Announces New Tariffs

The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)
The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)
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Iran's Partners in Crisis after Trump Announces New Tariffs

The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)
The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)

US President Donald Trump on Monday said any country that does business with Iran will face a tariff rate of 25% on any trade with the US as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

Iran, a member of the OPEC oil producing group, exported products to 147 trading partners in 2022, according to World Bank's most recent data.

China and the United Arab Emirates are Iran’s largest trading partners, putting them at the top of the list of countries at risk of being hit by Trump’s 25% tariff threat, according to Bloomberg.

Countries like India, Brazil, Iraq, Türkiye and Russia are also major trade partners of Iran.

Fuel is Iran's biggest export item by value, while major imports include intermediate goods, vegetables, machinery and equipment.

China

China is the primary buyer of Iranian oil, which remains under international sanctions over Tehran's nuclear program.

In 2024, the trade turnover between the two countries amounted to $17.8 billion.

In 2025, China bought more than 80% of Iran's shipped oil, according to data from Kpler, an analytics firm.

Iranian oil has a limited pool of buyers because of US sanctions that seek to cut off funding to Tehran's nuclear program.

Also, Iran has a record amount of oil on the water, ​equivalent to about 50 days of output, with China having bought ‌less because of sanctions and Tehran seeking to protect its supplies from the risk of US strikes, data from Kpler and Vortexa shows.

Iranian oil imported by China is typically labelled by traders as originating from other countries, such as Malaysia, a major transshipment hub, and Indonesia.

Chinese customs data has not shown any oil shipped from Iran since July 2022.

UAE

While China is Iran's premier trade partner, the UAE is the second largest. Trade between Iran and the UAE has reached $16.11 billion, making it a vital center in Iran’s regional trade and putting the Emirates at the top of the list of countries at risk of being targeted by Trump’s tariffs.

Iraq

Iraq, Iran’s historical partner and geographically closest, ranks fourth globally with a trade volume reaching $12.3 billion, representing 9.9% of Iran’s total foreign trade activity.

In recent years, Iraq has relied on Iran to supply about 40% of its needs for gas and electricity, at a time when Iraqi infrastructure lacks the capacity to process natural gas for domestic use.

Iraq is already subject to US tariffs of 35% under Trump’s decision to impose reciprocal tariffs with many countries last August.

Currently, gas exports from Iran have been suspended or severely curtailed due to a combination of extreme domestic heating demand and broader economic pressures.

India

India's total bilateral trade with Iran stood at $1.34 billion for the first 10 months of 2025, according to India's commerce ministry. Major Indian exports to Iran include basmati rice, fruits, vegetables, drugs and other pharmaceutical products.

The US president already imposed levies as high as 50% on Indian goods tied to their purchase of Russian oil. The two sides have been working for months to finalize a deal that would provide long-sought tariff relief to New Delhi.

Türkiye

Turkish exports to Iran were $2.3 billion in full-year 2025, while imports were $2.2 billion over 11 months of the year, according to sector and official data sources.

Germany

Iran's exports to Germany stood at around 217 million euros in the first eleven months of 2025, an increase of 1.7%, according to data from the state-owned international economic promotion agency Germany Trade & Invest. German exports to Iran fell by a quarter to 871 million euros over the period.

South Korea

South Korea's exports to Iran between January and November 2025 were marginal at $129 million, while imports stood at $1.6 million during the same period, according to data from the Korea International Trade Association.

Japan

Japan imported modest amounts of fruit, vegetables and textiles from Iran and shipped some machinery and vehicle engines there, according to the latest trade data from Japan that goes through November 2025.

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Business

G7 Trade Talks Target Critical Minerals as US-EU Tariff Rift Strains Unity

(L-R): EU commissioner for trade and economic security Maros Sefcovic, German Economy and Energy Minister Katarina Reiche, British State Secretary in charge of Trade Peter Kyle, US representative for Trade Jamieson Greer, French minister for trade Nicolas Forissier, Canadian state secretary in charge of international trade Maninder Sidhu, Italian Vice-Minister of Foreign Affairs and International Cooperation Maria Tripodi and Japanese Foreign Affairs delegate Minister Iwao Horii and Japanese Economy and Trade Minister Ryosei Akazawa prepare to pose for a group picture during the G7 Trade ministerial meeting in Paris, France, 06 May 2026. EPA/CHRISTOPHE PETIT TESSON / POOL
(L-R): EU commissioner for trade and economic security Maros Sefcovic, German Economy and Energy Minister Katarina Reiche, British State Secretary in charge of Trade Peter Kyle, US representative for Trade Jamieson Greer, French minister for trade Nicolas Forissier, Canadian state secretary in charge of international trade Maninder Sidhu, Italian Vice-Minister of Foreign Affairs and International Cooperation Maria Tripodi and Japanese Foreign Affairs delegate Minister Iwao Horii and Japanese Economy and Trade Minister Ryosei Akazawa prepare to pose for a group picture during the G7 Trade ministerial meeting in Paris, France, 06 May 2026. EPA/CHRISTOPHE PETIT TESSON / POOL
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G7 Trade Talks Target Critical Minerals as US-EU Tariff Rift Strains Unity

(L-R): EU commissioner for trade and economic security Maros Sefcovic, German Economy and Energy Minister Katarina Reiche, British State Secretary in charge of Trade Peter Kyle, US representative for Trade Jamieson Greer, French minister for trade Nicolas Forissier, Canadian state secretary in charge of international trade Maninder Sidhu, Italian Vice-Minister of Foreign Affairs and International Cooperation Maria Tripodi and Japanese Foreign Affairs delegate Minister Iwao Horii and Japanese Economy and Trade Minister Ryosei Akazawa prepare to pose for a group picture during the G7 Trade ministerial meeting in Paris, France, 06 May 2026. EPA/CHRISTOPHE PETIT TESSON / POOL
(L-R): EU commissioner for trade and economic security Maros Sefcovic, German Economy and Energy Minister Katarina Reiche, British State Secretary in charge of Trade Peter Kyle, US representative for Trade Jamieson Greer, French minister for trade Nicolas Forissier, Canadian state secretary in charge of international trade Maninder Sidhu, Italian Vice-Minister of Foreign Affairs and International Cooperation Maria Tripodi and Japanese Foreign Affairs delegate Minister Iwao Horii and Japanese Economy and Trade Minister Ryosei Akazawa prepare to pose for a group picture during the G7 Trade ministerial meeting in Paris, France, 06 May 2026. EPA/CHRISTOPHE PETIT TESSON / POOL

Group of Seven trade ministers meeting in Paris on Wednesday sought common ground on securing critical mineral supplies that are dominated by China, but fresh US tariff threats against European Union-made cars risked straining unity.

France wants critical minerals supplies to be among the most concrete deliverables during its G7 presidency as ministers prepare for a leaders' summit in mid-June, Foreign Trade Minister Nicolas Forissier ‌said as ‌he arrived for talks.

"I believe we will ‌make ⁠very concrete progress ⁠on rare earths and critical minerals, securing our supply chains and ensuring we are not held hostage by certain countries," he said.

Officials involved in the discussions said there was broad agreement on the need to reduce reliance on China, but significant differences remained about how to do so, said Reuters.

G7 unity is also being ⁠tested by comments from US President Donald Trump, who ‌said Washington would raise tariffs on ‌EU-made cars to 25% from 15%, arguing that Brussels was ‌not complying with a trade deal that was agreed upon ‌in Turnberry, Scotland, last year.

German Economy Minister Katherina Reiche said that she was in intensive talks with US officials over the tariffs. Germany's export-dependent automotive sector has already been under strain from weakening demand in China, ‌slower global growth and higher input and labor costs.

EU Trade Commissioner Maros Sefcovic said he and ⁠US Trade Representative ⁠Jamieson Greer had discussed the Turnberry agreement at a meeting in Paris on Tuesday and that he would be heading to the European Parliament, where negotiations on EU legislation related to the trade deal will take place later on Wednesday.

"We both clearly concluded that it's important to respect the deal from Turnberry from both sides, so we have to deliver on what was promised in Scotland," Sefcovic said.

The trade ministers are also expected to discuss industrial overcapacity - China being the main source - and reform of the World Trade Organization, Forissier said.

Business

Gulf Markets Higher as US-Iran Ceasefire Holds

An investor watches a stock screen at the Saudi Stock Exchange in Riyadh (AFP)
An investor watches a stock screen at the Saudi Stock Exchange in Riyadh (AFP)
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Gulf Markets Higher as US-Iran Ceasefire Holds

An investor watches a stock screen at the Saudi Stock Exchange in Riyadh (AFP)
An investor watches a stock screen at the Saudi Stock Exchange in Riyadh (AFP)

Saudi Arabia's ⁠benchmark stock ⁠index rose 0.4% on Wednesday, with most constituents trading in positive territory. Gains were led by information technology, materials and healthcare stocks.

Saudi Arabian Mining Co added 4.5%, while Arabian Mills for Food Products surged 8% after reporting a 32% rise in first-quarter net profit.

US President Donald Trump said he would briefly pause an operation escorting ships through the Strait of Hormuz, a key waterway that carries about a fifth of global oil supplies and has been blockaded by Iran since late February, triggering a global energy crisis.

So the fragile US-Iran ceasefire held firm despite a fresh flare-up in tensions, allowing investors to turn their attention back to corporate earnings.

Dubai's benchmark stock index rose 1.5%, rebounding from losses in the previous session.

Among individual stocks, blue-chip developer Emaar Properties gained 1.7%, while Dubai's largest lender, Emirates NBD, added 1.5%.

The Abu Dhabi benchmark index advanced 0.5%, with most constituents trading higher. ⁠Gains were led by utilities, healthcare and technology shares.

Presight AI Holding jumped 5%, while Alpha Dhabi climbed 2.3%.

The Qatari benchmark index edged up 0.3%, as most stocks traded higher. Industries Qatar gained 0.7%, while Qatar Fuel Co added 0.6%.

Business

Saudi Non-Oil Private Sector Defies ‘Hormuz Winds’, Regains Growth Momentum

A commercial street in Riyadh (AFP) 
A commercial street in Riyadh (AFP) 
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Saudi Non-Oil Private Sector Defies ‘Hormuz Winds’, Regains Growth Momentum

A commercial street in Riyadh (AFP) 
A commercial street in Riyadh (AFP) 

Saudi Arabia’s non-oil private sector posted a notable positive shift in April 2026, regaining growth momentum despite escalating geopolitical pressures and disruptions to international shipping routes — described as the “winds of Hormuz” — that affected supply chains and market expectations.

The Riyad Bank Purchasing Managers’ Index (PMI) rose to 51.5 points, surpassing the neutral 50-point mark. The recovery reflected companies’ ability to increase output levels in response to an influx of new business and progress on existing projects, despite continuing geopolitical challenges in the region and ongoing global supply chain disruptions that continued to weigh on customer spending decisions.

In this context, Riyad Bank Chief Economist Naif Alghaith said the results confirmed that the non-oil sector remained on a constructive and resilient trajectory, supporting the strategic goals of economic diversification under Saudi Vision 2030.

He added that the return of the index to expansion territory demonstrated that underlying business conditions remained fundamentally strong, with domestic demand and purchasing power offsetting the noticeable weakness in export orders. This, he noted, highlighted the growing importance of the Kingdom’s domestic economic engine in reducing reliance on external cycles.

Operationally, April saw a rapid and unprecedented increase in cost burdens, with input prices rising at the fastest pace since the survey began in August 2009. Sharp increases in raw material prices, shipping costs and logistics expenses resulting from regional disruptions pushed companies to implement near-record increases in selling prices in an effort to pass costs on to customers.

Alghaith said supply chain dynamics remained a key area of focus, particularly as delivery times continued to lengthen, prompting companies to adopt proactive behavior by increasing inventories as a precautionary measure to ensure business continuity.

Although the pace of overall business expansion remained slow by historical standards due to investor and customer caution surrounding the conflict in the Middle East, future expectations remained optimistic. The survey showed an improvement in business confidence regarding activity over the next 12 months, driven by long-term expansion prospects and major domestic infrastructure projects.

Alghaith said the Kingdom’s stable and robust economic fundamentals positioned it strongly to sustain long-term growth and stability, adding that optimism and strong domestic demand continued to reinforce confidence in Saudi Arabia’s economic transformation path.

For his part, Osama bin Ghanem Al-Obaidy, adviser and professor of commercial law, told Asharq Al-Awsat that the rise in the Purchasing Managers’ Index reflected the ability of Saudi companies to deal with the Strait of Hormuz crisis and its repercussions on the economy and global supply chains.

He said the improvement was driven by increased domestic demand, national economic diversification programs, Vision 2030 projects and infrastructure development, as well as stronger purchasing activity, reflecting the growing positive momentum of the Kingdom’s non-oil economic activities.

Al-Obaidy added that the improvement came despite mounting cost pressures resulting from higher raw material prices, transportation costs and rising wages.