U.S. President Trump on the 6th (local time) signed an executive order allowing additional tariffs to be imposed on U.S.-bound exports from countries that trade with Iran. The United States on this day also resumed nuclear talks with Iran.
Tariffs may be imposed on countries that "purchase, import, or otherwise procure" goods or services directly or indirectly from Iran.
Whether a particular country engages in such transactions with Iran will be determined by the Commerce Minister, who will notify the Secretary of State. The Secretary of State will then consult with relevant departments to decide whether to impose tariffs and at what rate on the country, report to President Trump, and President Trump will make the final decision.
In the executive order, President Trump cited an additional 25% tariff as an example. He said on the 12th of last month that he would impose a 25% tariff on all countries engaging in transactions with Iran.
The order takes effect starting on the 7th.
The executive order appears likely to serve as a strong "warning" to countries that transact with Iran, and at the same time could tighten Iran's "funding sources." Given that China is a major importer of Iranian oil, the step could also serve as a check on China.
However, it remains unclear whether President Trump, who has recently emphasized stable management of U.S.-China relations, will include China as a target of this "secondary sanctions" (second-round tariffs).
Earlier, the State Department said it would sanction 15 entities, two individuals, and 14 vessels involved in illegal transactions of Iranian oil and petrochemical products. The department said the revenue generated by these sanction targets is being used by the Iranian regime to evade sanctions and to fund domestic repression and support for terrorism.
The sanctioned vessels are classified as a so-called "shadow fleet" that exports Iranian crude by using the flags of third countries. Under the sanctions, all assets they hold in the United States are frozen, and transactions with U.S. persons and corporations are prohibited.