25 pc US tariffs over trading with Iran: What it means for India

by IANS |

New Delhi, Jan 13 (IANS) India, which is already facing steep 50 per cent US tariffs, is likely to be affected, among other countries trading with Iran, after US President Donald Trump announced 25 per cent tariffs on any country doing business with Tehran.

New Delhi is among Tehran's top five trade partners. India exported goods worth $1.24 billion to Iran and imported goods worth $0.44 billion in the financial year 2024-25, resulting in a total bilateral trade of $1.68 billion, according to official data.

"India and Iran are important trade partners. India has been among Iran's five largest trade partners in recent years. Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery, artificial jewellery, etc. In contrast, major Indian imports from Iran consist of dry fruits, inorganic/organic chemicals, glassware, etc," according to the information available on the website of the Indian Embassy in Tehran.

India and Iran signed a memorandum of understanding (MoU) in 2015 to jointly cooperate on the development of the Shahid Beheshti Port at Chabahar, Iran.

According to the Embassy, India continues to cooperate closely with Iran in realising the vision of Chabahar Port as a major regional and international hub in the movement of humanitarian and commercial goods.

The United States recently extended a six-month sanctions waiver for India to continue its operations at the Chabahar port, effective from October 29. The extension was seen as a diplomatic win for India, especially amid broader tensions involving US sanctions on Iran and Russia.

India can now continue developing and operating the terminal at least till April next year without facing punitive sanctions from Washington. The port is crucial for India's access to Afghanistan and Central Asia, allowing it to bypass Pakistan for trade and connectivity.

While China is Iran's largest trading partner, India, the UAE, and Turkey could also face trouble with the new US tariffs, according to industry experts.