How Donald Trump’s 25% Tariff Move on Iran Trade Could Impact India

Raga News Zone | Economy Desk

Former US President Donald Trump’s announcement of a 25% tariff on countries continuing trade with Iran could have notable implications for India’s economy, trade strategy, and foreign policy balance. The move is aimed at increasing economic pressure on Iran but may also affect nations with longstanding commercial and strategic ties with Tehran.

India’s Trade Position at Risk

India maintains trade relations with both Iran and the United States, making it particularly sensitive to such policy shifts. While India’s direct oil imports from Iran have reduced in recent years, bilateral trade continues in sectors such as agriculture, pharmaceuticals, and industrial goods. If enforced strictly, the proposed tariff could make Indian exports to the US more expensive and less competitive.

Impact on Export-Oriented Sectors

A 25% tariff on goods entering the US could hurt Indian exporters, especially those dependent on the American market. Industries like textiles, chemicals, engineering goods, and food products may face reduced demand or shrinking profit margins. Businesses may be forced to either absorb higher costs or look for alternative markets.

Strategic Projects Under Pressure

India’s strategic engagement with Iran includes infrastructure and connectivity initiatives that support regional trade and energy security. Increased US pressure could complicate these efforts, pushing India to carefully reassess its commitments while protecting long-term national interests.

Diplomatic and Economic Balancing Act

Experts say India will need to strike a careful balance—protecting its trade ties with the US while safeguarding strategic autonomy. Policymakers are expected to closely monitor the situation and engage in diplomatic discussions to minimize economic fallout.

What Lies Ahead

While the full impact will depend on how strictly the tariff is implemented and whether exemptions are granted, the announcement adds fresh uncertainty to global trade dynamics. For India, it underscores the challenges of navigating geopolitical tensions in an increasingly interconnected world.

More updates are on the way—stay tuned with Raga Zone.