New Delhi | January 13, 2026 

 US President Donald Trump announced on Monday a 25% tariff on all nations trading with Iran, a move that is expected to have far-reaching consequences for global trade. The announcement comes amid widespread unrest in Iran, where over 600 protests across the country’s 31 provinces have reportedly left at least 646 people dead, according to the US-based Human Rights Activist News Agency (HRANA). The Trump administration has also threatened military action if Iran continues to use lethal force against demonstrators.

India, being one of Iran’s key trading partners, is likely to feel the effects of these tariffs. Bilateral trade between India and Iran in 2024-25 totaled US$1.68 billion, with India exporting goods worth US$1.24 billion, including basmati rice, tea, sugar, fruits, and pharmaceuticals, and importing US$0.44 billion in goods such as organic chemicals, edible fruits, and mineral fuels. The additional US tariffs add to existing trade pressures, following earlier duties of up to 50% imposed on Indian goods over Russian oil imports.

Economic analysts warn that the new tariffs could complicate the ongoing India-US trade negotiations. US ambassador-designate Sergio Gor highlighted India’s strategic importance, noting active efforts to finalize a bilateral trade agreement. At the same time, challenges in the US Supreme Court over the legality of Trump’s tariffs may further create uncertainty for international businesses dealing with both the US and Iran.

Meanwhile, Iran continues to face a severe economic and social crisis, with the rial plummeting to over 1.4 million per US dollar and more than 10,700 people detained amid protests. Iran’s Foreign Minister Abbas Araghchi claimed that the unrest is being exploited by the US as a pretext for intervention, though no evidence has been presented. India will have to carefully navigate these developments to protect its trade interests and economic stability.

Trump Imposes 25% Tariff on Iran Trade Partners: Implications for India’s Economy

US President Donald Trump on Monday announced a 25% tariff on all trade partners of Iran, raising concerns over the impact on global commerce. The move comes amid violent protests in Iran, with more than 600 demonstrations reported across all 31 provinces, leaving at least 646 dead, according to the US-based Human Rights Activist News Agency (HRANA). The US has also threatened military action if Iran continues using deadly force against protesters.

India, being one of Iran’s significant trading partners, is expected to feel the impact of the new tariffs. Bilateral trade between India and Iran stood at US$1.68 billion in 2024-25, with exports from India totaling US$1.24 billion, including basmati rice, tea, sugar, fruits, and pharmaceuticals, and imports from Iran at US$0.44 billion, including organic chemicals, edible fruits, and mineral fuels. The new US tariffs could further complicate trade, coming shortly after the US had already imposed up to 50% duties on Indian goods over Russian oil purchases.

Economic experts warn that the additional duties may affect India-US trade negotiations, which are currently underway. US ambassador-designate Sergio Gor emphasized the importance of India as a partner, highlighting ongoing efforts to finalize a bilateral trade deal. Meanwhile, legal challenges in the US Supreme Court over the sweeping tariffs may create further uncertainty for global businesses engaged with both Iran and the US.

Amid mounting economic sanctions, Iran faces severe unrest, with the rial crashing to over 1.4 million to the dollar and over 10,700 arrests reported during the protests. Iran’s Foreign Minister Abbas Araghchi accused the US of using the unrest as a pretext for intervention, though no evidence was provided. India will need to navigate these geopolitical tensions carefully to safeguard trade and economic interests.