Trump imposes 25% tariff on Iran’s trade partners: What it means for India

Amid escalating violent protests across Iran, US President Donald Trump on Monday announced that countries doing business with Tehran would face a 25 per cent tariff on all trade with the United States.

In a post on Truth Social, Trump said the measure would take effect 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,” he wrote, adding that the order was “final and conclusive.”

The announcement came as unrest spread across Iran, with more than 600 protests reported in all 31 provinces. The US-based Human Rights Activist News Agency (HRANA) said at least 646 people have been killed, according to the Associated Press.

Trump has repeatedly warned Tehran against using lethal force on protesters, calling it a “red line” he believes Iran is “starting to cross.” He said his administration was weighing “very strong options.” White House press secretary Karoline Leavitt later said military action, including airstrikes, was among the options under consideration, while stressing that “diplomacy is always the first option for the president.”

Impact on India

Trump’s move is likely to affect India, which is among Iran’s key trading partners alongside China, Iraq, the United Arab Emirates and Turkey.

India and Iran share longstanding trade ties. According to the Indian Embassy in Tehran, during 2024–25 India exported goods worth $1.24 billion to Iran and imported $440 million, taking total bilateral trade to $1.68 billion. India’s major exports include basmati rice, tea, sugar, fruits and pharmaceuticals, while imports comprise apples, pistachios, dates and kiwi.

Data from Trading Economics shows cereals formed the largest share of India’s exports to Iran in 2024, while organic chemicals accounted for the biggest share of imports. Other traded items include food industry residues, spices, edible fruits, machinery and mineral fuels.

The new tariff threat could further complicate India’s trade position with the US, which has already imposed duties of up to 50 per cent on some Indian goods over New Delhi’s purchases of Russian oil. Analysts say the move could also pose hurdles for the long-pending India-US trade agreement.

US ambassador-designate Sergio Gor said on Monday that Washington and New Delhi remain engaged in finalising a bilateral trade deal, calling India “an essential partner.”

Legal and political pressure

Trump’s tariff policies are also facing scrutiny at home. Several US states and small businesses have challenged the measures in the Supreme Court, arguing the president exceeded his authority. Trump acknowledged the risk in another Truth Social post, warning that an adverse ruling could force refunds of billions of dollars already collected.

Protests and economic crisis in Iran

Iran has been rocked by nationwide protests driven by economic hardship, worsened by renewed UN sanctions over its nuclear programme. Authorities have imposed internet and telecommunications shutdowns as the unrest continues.

The Iranian rial has collapsed to more than 1.4 million to the US dollar, deepening public anger. HRANA said at least 10,700 people have been detained, with 512 protesters and 132 security personnel among the dead.

Iran’s Foreign Minister Abbas Araghchi on Monday alleged that the protests had “turned violent and bloody to give an excuse” for US intervention, though he provided no evidence to support the claim.