Tariffs are the golden treasures that keep on giving.
To bolster its domestic economy, Iran has strategically imposed substantial tariffs on foreign cars for over 45 years, even amidst economic challenges.
Iran imposes high tariffs on foreign cars, ranging from 55% to over 100%, depending on engine size and vehicle value, to protect its domestic economy.
In 2017, tariffs were set at 55% for cars with engines up to 1.5 liters, 75% for 1.5 to 2 liters, 95% for 2 to 2.5 liters, and up to 100% for 2.5 to 3 liters, with additional fees like taxes and customs duties increasing costs.
After lifting a ban on car imports in 2022, Iran capped car values at 20,000 euros, prioritizing cheaper models, though tariffs likely remained high, possibly around 100% for some vehicles. By early 2025, tariffs on cars over $50,000 may still reach 100%, but exact rates vary due to unclear policies, sanctions, and lobbying. These tariffs, in place for over 45 years despite economic struggles, aim to reduce foreign exchange outflows and support local automakers like Iran Khodro and Saipa, even as demand for imported cars persists.
