Mumbai: The United States has announced a new trade warning that could affect several countries, including India. US President Donald Trump said that any country doing business with Iran will face a 25 percent tariff on all trade with the US. The decision has raised concerns across global markets.
India Already Under Tariff Pressure
India is already dealing with steep US tariffs of up to 50 percent on some goods. The new 25 percent tariff linked to Iran trade could add further strain. Experts believe this may increase costs for Indian exporters and create fresh uncertainty in trade relations with Washington.
India-Iran Trade Ties Explained
India is one of Iran’s top five trading partners. In the financial year 2024–25, India exported goods worth USD 1.24 billion to Iran. During the same period, imports from Iran stood at USD 0.44 billion. This took total bilateral trade to USD 1.68 billion.
What India Exports and Imports?
India exports a wide range of products to Iran. These include rice, tea, sugar, medicines, manmade fibres, electrical machinery, and artificial jewellery. In return, India imports items such as dry fruits, chemicals, and glassware from Iran.
Importance of Chabahar Port
India and Iran signed an agreement in 2015 to jointly develop the Shahid Beheshti Port at Chabahar. The port plays a key role in India’s trade strategy. It allows India to access Afghanistan and Central Asia without passing through Pakistan.
US Sanctions Waiver Offers Relief
Recently, the US extended a six-month sanctions waiver allowing India to continue operations at Chabahar port. The waiver is valid from October 29 and runs until April next year. This was seen as a diplomatic success for India amid strict US sanctions on Iran.
More Countries at Risk
While China remains Iran’s biggest trading partner, experts say countries like India, the UAE, and Turkey could also face challenges under the new US tariff policy. How strictly the tariffs are enforced will decide the real impact.
What Lies Ahead?
The announcement adds uncertainty for India’s trade and strategic plans. While key projects continue for now, businesses and policymakers will closely watch how the US moves forward on enforcing the new tariffs.
