US imposed 25% Tariff on Iran Trade Partners, India Feels the Impact

President Donald Trump just shook up global trade again. On Monday, he announced a new 25% tariff on any country that does business with Iran. He feels that this will put maximum pressure on Iran’s government, which is already under pressure from massive protests by its own citizens. While the target is Iran but the damage is hitting Iran’s trade partner countries like India, China and the UAE.

Donald Trump said the tariff would immediately come into effect, stating that any country doing business with Iran will pay a tariff of 25% on any and all business being done with the United States of America. The announcement did not include detailed guidelines or exemptions and the White House has not provided any further clarification.

Also read: Best Way to Save Money: Expert Tips to Grow Wealth Faster

Why This is a Huge Deal for India?

For India, the announcement came at a time when Indian exporters are already struggling with the previous US tariffs. This new announcement creates a triple punch effect that could make Indian products more expensive in the US market.

The “75% Tariff” Math:

25% “Reciprocal” Tariff: Already imposed previously due to earlier trade disputes.

25% Russian Oil Penalty: Added because India continues to buy oil from Russia.

25% New Iran Tariff: The latest addition for trading with Iran.

Total: 75%: Many experts fear that some Indian goods could now face a total tax of 75% when entering the US.

India- Iran Trade by the Numbers

India and Iran have a long history of trading essentials. Even with global tensions, the numbers show a steady relationship:

Total trade (2024-25) - About $1.68 billion.

What India Sells to Iran - Mostly food, medicine, Basmati rice, tea, sugar and various drugs.

What India Buys from Iran - Mostly dry fruits like pistachios and dates, plus some chemicals.

The big worry now is that Indian companies might have to stop selling rice or tea to Iran just to avoid losing their much bigger customers in the US.

India’s Massive Trade with the US

Just look at how much we sell to America to understand why India is so worried. The US is India’s biggest trading partner, with trade worth over $130 billion last year. If a 75% tariff is applied, sectors like textiles, jewelry and auto parts could be priced out of the American market entirely. However, there is a slight relief that some items like pharmaceuticals have been exempted from these tariffs in the past to keep medicine affordable for Americans.

How the Rest of the World is Reacting?

India is not the only country; other major countries were also badly affected by this step. First in line is China, which is the biggest trade partner of Iran. They protested over the tariff and called this move “unilateral” and “unfair”. The second major country is Turkey, which also does a lot of business with Iran, and now rattling to see how this will affect their shipments to the US, followed by other countries like the UAE and France.

Trump’s order is effective immediately, but there are still many questions about how this will be implemented. For India, it would be a critical act of balancing to keep the historic ties with Iran (projects like the Chabahar Port) or protect the massive export business with the United States.