First Russia, now Iran… India’s exports will be saved from Trump’s tariff sword, know in detail

Delhi. Exporters are cautious after US President Donald Trump announced imposing 25 percent additional duty on countries doing business with Iran. Exporters say the impact of the additional duty can be assessed only after the Trump administration issues a notification. Indian exporters already face 50 percent US duty.

Trump has announced that any country doing business with Iran will have to pay a 25 percent tariff on its trade with the US. This is a move that could impact Iran’s major trading partners like India, China and the United Arab Emirates (UAE).

Exporters’ organization ‘Federation of Indian Export Organizations’ (FIEO) on Tuesday said that domestic companies are complying with all the sanctions related to trade with Iran. However, it will be possible to assess the impact of this warning only after getting clear information on Trump’s announcement of imposing 25 percent duty on countries doing business with Iran.

Impact on India-Iran trade relations

Trump’s announcement may affect India-Iran trade relations. FIEO Director General Ajay Sahay said, “Indian companies and banks are fully and clearly complying with OFAC (Office of Foreign Assets Control) sanctions imposed on Iran. We are dealing only in the food and pharmaceutical sector which are not banned, so there is no basis to fear any adverse impact on India.” An exporter said, ”We are concerned about the US President’s announcement. We are waiting for notification from America in this regard.

India exports them

Major exports from India to Iran include rice, tea, sugar, medicines, synthetic fibres, electrical machinery and artificial jewellery. Major imports include dry fruits, inorganic/organic chemicals and glassware. An important aspect of India-Iran relations is the joint development of Chabahar port. Located in the energy-rich Sistan-Baluchistan province on the southern coast of Iran, this port is being developed by India and Iran to boost connectivity and trade relations. India’s merchandise exports to Iran increased by 1.55 percent to US $ 1.24 billion in 2024-25, while imports declined by 29.32 percent to US $ 441.83 million.