Trump's 25% Tariff on Iran Trade: India's $1.68 Billion Business at Risk?

• Donald Trump announced a 25% tariff on countries trading with Iran, effective immediately and described as 'final and decisive'.
• India is a major trading partner with Iran, with bilateral trade reaching $1.68 billion in FY2024-25, primarily involving Indian exports of rice and imports of organic chemicals/dry fruits.
• This new tariff could increase India's existing US tariff (due to Russian oil purchases) from 50% to 75%, making Indian products more expensive in the US.
• Chabahar Port, a key strategic project for India-Iran cooperation, could see operations slow down due to political and economic turmoil and these tariffs.
• India may need to find alternative markets, but strategic projects like Chabahar are expected to continue despite the challenges.

Why It Matters: Trump's new 25% tariff on Iran trade threatens India's economic ties and could raise US tariffs to 75%.