US tariff on Iran trade partners unlikely to impact India: Govt

India’s trade relationship with Iran remains limited, with Tehran not featuring among India’s top 50 global trading partners, government sources said while commenting on United States’ announcement of

a 25% tariff on countries doing business with Iran.

India’s total trade with Iran stood at about $1.6 billion last year, accounting for approximately 0.15% of India’s overall trade, the sources said. The trade value is expected to decline further in the current financial year due to external economic factors.

Iran’s total imports were estimated at around $68 billion in 2024, with the United Arab Emirates emerging as its largest import partner at $21 billion, or 30% of total imports. China followed with imports worth $17 billion, or 26%, while Turkiye accounted for $11 billion, or 16%. Imports from the European Union stood at about $6 billion, or 9%.

Also Read: Iran protests: What to know as government shuts down internet and phone networks

India’s share in Iran’s imports was only $1.2 billion, representing around 2.3%, the sources aded.

Given the limited scale of bilateral trade, the US decision to impose a 25% tariff on trade partners of Iran is expected to have minimal impact on India, the sources stressed.

Earlier on Monday, January 12, US President Donald Trump wrote on Truth Social that any country doing business with Iran will face a 25% tariff. The tariff will be applicable on "any and all business being done with the United States of America and is effective immediately," Trump wrote in his social post.