The United States administration under Donald Trump has announced a 25 percent additional tariff on countries that continue commercial engagements with Iran, a move aimed at intensifying economic pressure on Tehran amid ongoing political unrest and tensions with Washington.
The decision has drawn attention in India, which maintains limited but ongoing trade relations with Iran. Indian exports to Iran include chemicals, pharmaceuticals and agricultural products, while imports mainly consist of items such as dry fruits and select petrochemical products. Though the overall trade volume is relatively modest, the new US tariff could indirectly affect India by making its exports to the United States more expensive.
Indian exporters fear that if the tariff is enforced strictly, goods shipped from India to the US could face higher cumulative duties if New Delhi continues trade with Iran. This could reduce the competitiveness of Indian products in the American market at a time when India is seeking to expand exports and strengthen manufacturing-led growth.
The development also adds complexity to India’s diplomatic balancing act. While India has steadily reduced its dependence on Iranian oil in recent years, it continues to view Iran as a strategically important partner, particularly for regional connectivity and access to Central Asia. At the same time, the United States remains one of India’s largest trading partners and a key strategic ally.
Officials in New Delhi are closely assessing the scope and implementation of the tariff announcement. The government is expected to engage with US counterparts to seek clarity and possible exemptions, while also reviewing trade exposure to ensure that India’s broader economic and strategic interests are protected.