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US mulls shopping restrictions in a bid to deter Iran

US mulls shopping restrictions in a bid to deter Iran

Iranian diplomats, already subject to strict travel limits in New York, could be barred from entering bulk retailers like Costco and Sam's Club without prior permission from the State Department.

Business Today Desk
Business Today Desk
  • Updated Sep 7, 2025 10:43 AM IST
US mulls shopping restrictions in a bid to deter IranTrump’s new Iran move: forget nukes, diplomats may lose Costco card

Forget missiles and sanctions - the Trump administration is now weighing whether Iranian diplomats should be blocked from shopping at Costco.

An internal State Department memo, reviewed by the Associated Press, outlines a set of possible new restrictions on delegations attending the UN General Assembly later this month. The measures could target Iran, Sudan, Zimbabwe, and Brazil, and would build on the administration's broader visa crackdown.

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The memo suggests that Iranian diplomats, already subject to strict travel limits in New York, could be barred from entering bulk retailers like Costco and Sam's Club without prior permission from the State Department. Such stores have long been favored by Iranian envoys seeking goods unavailable in Iran, often in large quantities, to ship back home.

Associated Press reported that the Trump administration has already denied visas to Palestinian leader Mahmoud Abbas and his delegation for the UN meeting and is now considering ramping up restrictions on several other delegations. The new proposals could "severely limit their ability to travel outside New York City," the report said.

The restrictions under discussion are part of a wider review that extends to officials who already have legal permission to enter the US. According to the memo, the State Department is also looking into drafting rules to impose terms and conditions on wholesale club memberships for all foreign diplomats.

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The proposals have raised questions about whether Brazil's President Luiz Inácio Lula da Silva could be affected. Lula is scheduled to open the UN session on September 22, following the tradition that Brazil speaks first at the high-level gathering. The US president follows as the second speaker.

Trump has criticised Lula directly, objecting to the prosecution of his ally, former Brazilian President Jair Bolsonaro, who faces allegations of leading an attempted coup. The memo does not clarify if Lula himself or lower-level members of Brazil's delegation would face limits.

Sudan and Zimbabwe were also listed as possible targets, though no specifics were given. 

In a sign of shifting priorities, Syria will actually see restrictions eased. The memo said that the Trump administration issued a waiver last week on long-standing travel limitations for Syrian delegates, a move linked to US efforts to build ties with Damascus following the ouster of President Bashar Assad last year.

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The potential "Costco ban" on Iran remains under consideration, and no timeline has been set for when or if it could take effect.

Published on: Sep 7, 2025 10:43 AM IST
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