Mohan Sinha
26 Sep 2025, 17:21 GMT+10
NEW YORK CITY, New York: The Trump administration has introduced new rules stopping Iranian diplomats in New York from shopping at wholesale clubs like Costco or buying expensive goods in the U.S. without special approval from the State Department.
"We will not allow the Iranian regime to allow its clerical elites to have a shopping spree in New York while the Iranian people endure poverty, crumbling infrastructure, and dire shortages of water and electricity," the department said in a statement.
The State Department's Office of Foreign Missions explained in notices to be published this week that wholesale club memberships and the ability to buy items such as watches, jewelry, perfumes, handbags, alcohol, tobacco, and cars count as " benefits." As a result, they require U.S. government permission.
Iran is the only country directly affected by this move. Stores like Costco have long been popular with Iranian diplomats in New York because they can buy large amounts of cheap goods—products that are often unavailable back home—and then ship them to Iran.
The decision is part of a larger campaign by the Trump administration to restrict visas and tighten rules on foreign leaders and diplomats, even those attending the United Nations. While world leaders gather this week for the U.N.'s annual meeting, the new rules will remain in place year-round for any Iranian diplomats assigned to the U.N.
According to the official notice, Iranian diplomats and their families must "obtain approval from the Department of State prior to: obtaining or otherwise retaining membership at any wholesale club store in the United States, to include but not limited to Costco, Sam's Club, or BJ's Wholesale Club, and acquiring items from such wholesale club stores through any means."
Clifton Seagroves, the head of the Office of Foreign Missions, added that Iranian diplomats will also need approval to buy luxury goods worth more than US$1,000 and cars costing more than $60,000.
The government listed what counts as "luxury goods." These include watches, leather and silk clothing, shoes, furs and fake furs, handbags, wallets, cosmetics, perfumes, pens, artwork, antiques, carpets, jewelry, precious stones, metals, electronics, appliances, sports equipment, musical instruments, cigarettes, cigars, and alcoholic drinks like wine, beer, and spirits.
Officials had said earlier in September that they were thinking about these restrictions. Seagroves signed the orders on September 16 and 18.
This is not the first time the Trump administration has taken such steps. Earlier, it denied visas to Palestinian leader Mahmoud Abbas and his delegation for the U.N. General Assembly. It has also considered imposing restrictions on diplomats from Sudan, Zimbabwe, and Brazil.
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