By Hanika Kashyap
India’s export of tea and rice is likely to be hit with a major setback after U.S. President Donald Trump announced a 25% tariff on countries doing business with Iran. The decision came on Tuesday, January 13, after Iran’s violent response to protests, which resulted in at least 600 people killed and thousands arrested across the country.
Trump shared a post on Truth Social. There, he confirmed that countries doing business with the Islamic Republic of Iran will face a 25% tariff. This move directly affects China, being Iran’s biggest trading partners.
India comes second in this list, with the country exporting goods worth $1.24 billion to Iran in fiscal year 2024-2025. It has imported goods worth $0.44 billion, which takes the total trade to $1.68 billion. In Indian rupee terms, approximately 14,000 to 15,000 rupees in trade is done between the countries. Other than that, the United Arab Emirates and Turkey are also among Tehran’s major trading partners.
Speaking more of India’s trade with Iran, the biggest share was in chemicals, amounting to $512.92 million. Next are edible fruits, nuts, peels of citrus fruits, and melons worth $311.60 million. Finally, mineral fuels, oils, and distillation products were at $86.48 million, according to Trading Economics.
The 25% tariff will make things bad for India. This is because the United States has already put a 50% tax on Indian goods tied to their purchase of Russian oil. The new announcement takes the tariff to 75%. Moreover, the move comes in between the months-long negotiations between the two countries to finalise a deal that would provide relief to New Delhi.
However, the threat depends on whether the US Supreme Court legalises the global tariffs. If the SC thinks against his decision, then it would limit Trump’s power to impose taxes on other countries. The court’s decision will be revealed on Wednesday.
Amid the mass unrest in Iran, Trump has sided with the protesters and warned Tehran to discontinue its violent administration. During an interview with Fox News, Trump also warned Iran to expect a clap back from the US if it keeps shooting its protestors.