Indian authorities will be forced to review their trade policy after US President Donald Trump announced new tariffs on trade with Iran, The Times of India reported.
Earlier Trump imposed 25% tariffs on all countries doing business with Iran. This happened after a wave of protests in the Islamic Republic, whose authorities blamed the US and Israel for the unrest. The White House resident did not rule out the use of force against Tehran.
The statement raises “serious questions“ for India. Washington's economic pressure will force New Delhi to review its trade policy and take steps to protect farmers and exporters, the publication notes. The country will have to “balance economics, strategy and geopolitics“ to maintain good relations with the US while protecting its own interests.
India is Iran's fifth largest trading partner. It exports rice, tea, sugar, pharmaceuticals and electrical equipment. Dried fruits and chemicals are imported from Iran. The Islamic Republic is a key buyer of Indian rice, with over 1 million tonnes shipped annually. Any disruption in supplies will hurt Indian farmers.
A second concern for New Delhi is the situation with the Iranian port of Chabahar, which is considered India's gateway to Afghanistan, bypassing Pakistan. Sanctions against Indian companies operating at the port could complicate plans for regional connectivity.
New Delhi and Washington began talks on a comprehensive trade agreement in February 2025 after Indian Prime Minister Narendra Modi visited the United States. The countries aim to double bilateral trade to $500 billion by 2030. The document is scheduled to be signed in the fall of 2024. The Indian delegation has visited Washington several times for subsequent rounds of talks, while the American delegation has visited New Delhi.
On August 6 last year, the United States imposed an additional 25% tariff on India in connection with the purchase of Russian oil and petroleum products. At the end of August, US tariffs on imports of Indian goods and services were increased to 50%. India considered these actions unfair.