US President Donald Trump has announced a sweeping 25 per cent tariff on any country that continues to do business with Iran, sharply escalating pressure on Tehran amid its violent crackdown on nationwide anti-government protests. The move could have significant implications for major US trading partners, including India.
In a post on Truth Social, Trump said the tariff would apply “effective immediately” to any country trading with Iran while also doing business with the United States, calling the order “final and conclusive”. The announcement comes as the US administration weighs stronger action against Tehran, including possible military options.
White House Press Secretary Karoline Leavitt said that airstrikes were among several options under consideration, even as diplomatic channels with Iran remain open through Trump’s special envoy Steve Witkoff.
Impact On India’s Trade With Iran
India is among Iran’s key trading partners, alongside China, the UAE and Turkey. According to the Indian Embassy in Tehran, bilateral trade between India and Iran stood at $1.68 billion in FY 2024–25, with Indian exports worth $1.24 billion and imports valued at $0.44 billion.
India’s exports to Iran were led by organic chemicals worth over $512 million, followed by fruits and nuts at $311 million, and mineral fuels and oils at around $86 million. A 25 per cent tariff on trade with the US could put Indian exporters under fresh pressure, especially as New Delhi and Washington have been negotiating tariff relief for months.
The threat of additional duties also comes after the US imposed levies of up to 50 per cent on certain Indian goods linked to Russian oil purchases, further complicating trade ties.
Uncertainty Ahead
The tariff threat is clouded by uncertainty, with the US Supreme Court expected to rule soon on the legality of Trump’s global tariff powers. A verdict against the administration could limit its ability to swiftly impose duties on Iran’s trading partners.
Meanwhile, unrest in Iran continues to intensify, with nearly 600 people reportedly killed and thousands arrested. Trump has publicly backed protesters and warned Tehran against further violence, saying the US is reviewing “very strong options” in coordination with allies.
