US President Donald Trump has announced a sweeping 25% tariff on any country that continues to trade with Iran, a move that could have significant implications
for global trade flows, including for India. The decision is aimed at increasing pressure on Iran’s leadership over its violent crackdown on recent protests, which have reportedly left nearly 600 people dead and thousands arrested. The tariff threat also comes as Trump weighs possible military action against Tehran. “Effective immediately, any country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent on any business being done with the United States of America. This Order is final and conclusive,” Trump said in a post on Truth Social. Also Read - Trump's Iran Tariff: List Of Countries Which Could Be Impacted Ft. India, China, And More The announcement has raised concerns that the US could disrupt major trading relationships worldwide. Countries such as China, India, the United Arab Emirates and Turkey are among Iran’s key trading partners and could be directly affected.
Will the move impact India?
While China is widely seen as Iran’s largest trading partner, India also has substantial trade ties with Tehran. According to data from the Indian Embassy in Iran, India exported goods worth $1.24 billion to Iran in the 2024–25 financial year and imported goods worth $0.44 billion. This takes total bilateral trade to about $1.68 billion, or roughly Rs 14,000–15,000 crore.
India’s main exports to Iran include organic chemicals worth $512.92 million, followed by edible fruits, nuts, citrus peels and melons valued at $311.60 million. Mineral fuels, oils and distillation products accounted for imports worth $86.48 million, according to a report by Trading Economics.
The new tariff threat comes at a sensitive time for India-US trade ties. Washington has already imposed tariffs of up to 50% on certain Indian goods linked to India’s purchase of Russian oil. An additional 25% tariff linked to Iran trade could further complicate matters, especially as New Delhi and Washington have been negotiating for months to secure long-awaited tariff relief.
However, Trump’s move may face a legal hurdle. A US Supreme Court ruling on the legality of his global tariff powers is pending. If the court rules against him, it could limit his ability to swiftly impose duties on countries trading with Iran. The court’s next opinion day is scheduled for Wednesday.
Until then, India and other US trading partners are left weighing the economic fallout of Trump’s latest tariff threat and its potential impact on already strained global trade relations.
