Washington ~ US President Donald Trump recently declared that any nation engaging in trade with Iran will face a 25% tariff on their transactions with the United States. This decision could significantly affect Iran’s major trade partners, including India, China, and the UAE.

President Trump stated, “Effective immediately, any country conducting business with the Islamic Republic of Iran will be subject to a 25% tariff on all transactions with the United States. This directive is final and binding,” in a post on Truth Social.

Among Iran’s key trading partners are China, Turkey, India, the UAE, Pakistan, and Armenia.

This tariff announcement has the potential to impact India, which has been one of Iran’s top five trade partners in recent years.

India is already facing a 50% tariff from the US, one of the highest globally, with 25% specifically targeting Delhi’s purchases of Russian energy.

Key Indian exports to Iran include rice, tea, sugar, pharmaceuticals, electrical machinery, and artificial jewelry, while major Indian imports from Iran consist of dry fruits, chemicals, and glassware.

In 2023, India exported goods worth $1.19 billion to Iran, while imports totaled $1.02 billion, as per the Observatory of Economic Complexity.

Rice, soybean meal, and bananas were the top Indian exports to Iran, with acyclic alcohol derivatives being a significant import from Iran.

The Indian Embassy in Tehran highlighted the historic and cultural ties between India and Iran, emphasizing the growth in bilateral relations through commercial cooperation and people-to-people exchanges.

A key collaboration between India and Iran is the development of the Chabahar port, aimed at enhancing connectivity and trade.

India signed an MoU with Iran in 2015 for the development of Chabahar port, followed by a trilateral agreement with Afghanistan in 2016 to establish the International Transport and Transit Corridor.

India Ports Global Limited (IPGL) took over operations at Chabahar Port in 2018 and signed a ten-year contract in 2024 for the Shahid Beheshti Terminal.