Trump Threatens 50 Percent Tariffs on Countries Providing Arms to Iran

President Donald Trump threatened to impose tariffs on goods entering the United States from countries that supply weapons to Iran.

In an April 8 Truth Social post, Trump stated that any nation found arming Tehran would immediately face a 50 percent tariff rate without exemptions.

“A Country supplying Military Weapons to Iran will be immediately tariffed, on any and all goods sold to the United States of America, 50%, effective immediately. There will be no exclusions or exemptions!” he wrote.

Minutes before his tariff announcement, Trump confirmed that the United States would “work closely” with Iranian authorities, adding that there would be “no enrichment of uranium.”

“We are, and will be, talking Tariff and Sanctions relief with Iran. Many of the 15 points have already been agreed to,” the president said in an April 8 Truth Social post.

Trump, prior to his April 7 deadline for Iran, announced on his social media platform that he agreed to a two-week pause on attacks on Tehran. The reprieve was contingent on the “complete, immediate, and safe opening” of the Strait of Hormuz.

The temporary cease-fire was brokered by Pakistan’s diplomatic efforts.

“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted on Truth Social a little more than an hour before his deadline. “We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate.”

A truce would allow Washington and Tehran to iron out a longer agreement to end the six-week-old conflict that has ignited a global energy crisis and enormous volatility in international markets.

But the suspension might be fragile as reports indicated missiles were still being fired in the region, even as the cease-fire was introduced at the 8 p.m. ET deadline.

The Day After

Still, U.S. stocks welcomed the two-week pause, with the leading benchmark averages soaring on a potential path to peace.

The blue-chip Dow Jones Industrial Average rallied nearly 1,300 points, or 2.6 percent. The tech-driven Nasdaq Composite Index rallied 800 points, or 3.4 percent. The broader S&P 500 jumped 175 points, or 2.6 percent.

Equities could maintain the momentum should de-escalation efforts stay intact.

“So far, US company earnings outlooks have not been meaningfully impacted by the conflict, but this could change quickly if a resolution is not reached soon,” John Belton, portfolio manager at Gabelli Funds, said in a note to The Epoch Times.

“The market is just waiting for visibility and what the path forward is going to be in the Middle East before normal market dynamics resume.”

Energy markets, meanwhile, were swimming in a sea of red ink.

A barrel of West Texas Intermediate—the U.S. benchmark for oil prices—cratered nearly $20, or about 17 percent, to below $94 on the New York Mercantile Exchange.

Brent, the global benchmark, plummeted about $17, or around 16 percent, to $92 a barrel in overseas trading.

But wild swings on Wall Street will likely not slow down soon, cautions Tom Essaye, president and co-founder of the Sevens Report Research.

“Looking forward, while clearly this is a positive for markets compared to the alternative, it will not automatically end market volatility,” Essaye said in a note emailed to The Epoch Times.

“Most expect the ceasefire to hold but don’t expect it to be a painless process. Negotiations over the next two weeks will be tense and threats from both sides that send oil temporarily higher are likely.”

Despite the sharp selloff in crude oil, motorists are still feeling the pain at the pump as the decline could take time to filter through the retail gas market.

As of April 8, the national average for a gallon of gasoline ticked up 2 cents to above $4.16, according to the American Automobile Association.

While a mix of driving season demand and the transition to summertime fuel will affect prices, the path for gas remains uncertain, says Patrick De Haan, head of petroleum analysis at GasBuddy.

“At this point, the trajectory of fuel prices remains highly uncertain and is largely contingent on the reopening of the Strait of Hormuz. Until that occurs, the risk of further increases remains firmly in place,” he said in an April 6 note.

The Strait of Hormuz is a narrow waterway located between Iran and the Arabian Peninsula. It handles approximately 20 percent of the world’s oil supply, as well as liquefied natural gas and other goods.