The United States has announced a plan to impose a 25 percent tariff on any country that continues trading with Iran, a move that could sharply escalate economic pressure on India. New Delhi has maintained deep commercial ties with Tehran for decades, and the new tariff could make access to the US market significantly more difficult for Indian exporters.
India already faces a total tariff burden of 50 percent on its goods entering the United States. This includes 25 percent reciprocal duties and another 25 percent penalty linked to India’s purchase of Russian oil. If the new Iran related tariff takes effect, the total could climb to 75 percent, raising concerns that Indian exports may lose competitiveness in one of their most important markets.
President Donald Trump has also warned that BRICS nations could face an additional 10 percent tariff. He has mentioned the possibility of higher duties on agricultural products as well, although those measures have not yet been implemented. These threats suggest that India may soon face a broader wave of trade pressure.
India exports rice, tea, sugar, pharmaceuticals, handicrafts, electrical machinery and artificial jewellery to Iran. It imports dry fruits, chemicals, glassware and other industrial goods. Beyond trade, India has invested heavily in the Chabahar Port, a project that plays a crucial role in its access to Afghanistan. The United States previously sanctioned the port but granted India a six month waiver in 2025.
Chabahar remains strategically vital for India. If Washington withdraws future permissions for its use, India’s regional trade routes and long term strategic planning could face a serious setback.
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