India is unlikely to face any significant economic fallout from the United States’ newly announced tariffs on countries that continue to trade with Iran, as bilateral trade between New Delhi and Tehran
remains minimal, a government source told CNN-News18.
The assessment comes after Donald Trump unveiled a new trade order imposing a 25 per cent tariff on all US-bound goods from countries that do business with Iran- a move that has raised concerns among several global trading partners, including India.
Read more:India-Iran Trade: Here’s What India Buys And Sells Amid Trump’s 25% Tariff Warning
However, the government source said Iran does not even figure among India’s top 50 global trading partners. India’s total trade with Iran stood at about $1.6 billion last year, accounting for roughly 0.15 per cent of India’s overall trade volume.
“India’s trade exposure to Iran is extremely limited,” the source said, adding that trade levels are expected to decline further in the current financial year due to external economic factors.
In 2024, Iran’s total imports were estimated at around $68 billion. Its largest import partners were the United Arab Emirates at $21 billion (30 per cent), China at $17 billion (26 per cent), Türkiye at $11 billion (16 per cent) and the European Union at $6 billion (9 per cent). India’s share of Iran’s imports was only about $1.2 billion, or roughly 2.3 per cent.
Read more: Trump Imposes 25% US Tariff On Nations Trading With Iran: What It Means For India
Given these figures, the 25 per cent tariff announced by Washington is expected to have a negligible impact on India, the source said.
The development comes at a time when India is already facing elevated trade pressures from the US, including tariffs of up to 50 per cent linked to its purchases of Russian oil. Despite this, officials said India’s limited commercial engagement with Iran significantly reduces the risk of any additional fallout from the latest US measures.
Donald Trump described the decision as “final and conclusive” and said the tariffs would take effect immediately, though he did not specify how they would be enforced or whether any exemptions would apply. The announcement comes amid continuing unrest in Iran, where protests have erupted against the current regime led by Ali Khamenei, with demonstrators demanding greater political freedoms.
