US Announces 25% Tariff on Iran Trade, Raising Stakes for India
President Donald Trump says countries doing business with Iran will face sweeping tariffs on all trade with the US, putting India’s commercial ties with Tehran under scrutiny.
US, Jan 13 : The United States has announced a fresh and sweeping trade crackdown targeting countries that continue commercial engagements with Iran a move that could have significant implications for India and other major global trading partners.
US President Donald Trump said any country conducting business with Iran will now be subject to a 25 per cent tariff on all trade with the United States, with the order taking effect immediately.
In a post on Truth Social, Trump described the decision as “final and conclusive,” signalling that there would be no exemptions, phased rollouts, or negotiations.
“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive,” Trump wrote.
Why India could feel the impact
The announcement places India in a delicate position, given its long-standing trade relationship with Iran alongside its strategic partnership with Washington.
India already faces a 50 per cent tariff on its exports to the US, with American officials attributing half of that levy to New Delhi’s continued purchase of Russian oil, which Washington argues indirectly supports Moscow’s war in Ukraine.
According to India’s Ministry of External Affairs, Iran remains a key commercial partner, with India consistently ranking among Tehran’s top five trading nations.
Indian exports to Iran include sugar, rice, pharmaceuticals, tea, man-made fibres, and electrical machinery, while imports from Iran largely consist of chemicals, dry fruits, and glassware.
Political backing in Washington amid unrest in Iran
Trump’s decision drew strong support from senior Republican leaders. US Senator Lindsey Graham praised the move as a decisive step toward economically isolating Iran’s leadership.
In a post on X, Graham said the US action had strengthened protest movements inside Iran and warned that the regime had crossed multiple “red lines.” He also called for potential military action, while ruling out the deployment of ground troops.
The remarks come amid widespread unrest in Iran, with protests reported across several provinces, including Azerbaijan province and the central city of Arak, according to Iranian media.
Human rights groups claim the situation has turned deadly. The Human Rights News Agency has reported at least 544 deaths and more than 10,600 arrests so far.
Earlier on Sunday, Trump said Iranian leaders had reached out to Washington to explore negotiations, even as protests continue.
Speaking to reporters aboard Air Force One, Trump said Iran had contacted the US seeking talks but warned that unfolding events could prompt American action before diplomacy takes shape.
“They called. Iran called to negotiate yesterday. The leaders of Iran called. They want to negotiate,” he said.
