As US tariff threat looms, officials say India-Iran trade ‘minuscule’

India’s trade with Iran is minuscule and primarily involves supplies of food and pharmaceuticals essential for inflation-ravaged Iranian citizens, people aware of the matter said, adding that any implication of new American tariffs for those who export to Iran will depend on the specifics of Washington's decisions.

- Rajeev Jayaswal & Rezaul H Laskar

US President Donald Trump said in a social media post on Monday that “effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive...”

His comments were in response to a crackdown on protests by the regime in Tehran, which has reportedly led to the deaths of 2,000 people.

India’s external affairs minister S. Jaishankar separately said he discussed trade, critical minerals, nuclear cooperation, defence and energy with his US counterpart Marco Rubio during a phone call on Tuesday. “Just concluded a good conversation with @SecRubio. Discussed trade, critical minerals, nuclear cooperation, defence and energy. Agreed to remain in touch on these and other issues,” Jais-hankar wrote in a post on X.

People familiar with the matter, who asked not to be named, said the specifics of any US executive order over such a tariff would clarify the status of the bulk of India’s exports to Iran, which overall make for a minuscule proportion of India’s overall merchandise exports. If any additional levies are to kick in, they would apply on exports to America, where Indian goods are already subject to 50% duties, including a 25% punitive levy over Russian energy purchases.