Trump: 25% US Tariff On Nations For Iran Biz Deals
13 Jan 2026 6:23 AM IST13 Jan 2026 6:23 AM IST
Iran's main trading partners are China, Turkey, the United Arab Emirates and Iraq
US President Donald Trump (AFP)
New Delhi: US President Donald Trump announced that any country doing business with Iran will have to pay a 25 per cent tariff on its trade with Washington, a move that could impact Tehran's major trading partners such as India, China and the UAE.
“Effective immediately, any country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent on any and all business being done with the United States of America. This order is final and conclusive," Trump said in a post on Truth Social on Monday.
Iran's major trading partners are China, Turkey, India, the UAE, Pakistan and Armenia.
Though sources in the Indian government said the announcement is likely to have a minimal impact, as India’s trade with Iran is already “negligible”, exporters are keeping their fingers crossed as the Trump administration has not issued a notification on the additional tariff with full details.
Federation of Indian Export Organisations (FIEO) said Indian companies and banks are in full and demonstrable compliance with OFAC (Office of Foreign Assets Control) sanctions on Iran, engaging exclusively in clearly permitted humanitarian trade, mainly in food and pharmaceuticals. However, FIEO director-general Ajay Sahai said that an explicit clarification is needed to remove any ambiguity over whether the issue will affect India.
Indian exporters are already reeling under the impact of the steep 50 per cent tariffs imposed by the US. If the Trump administration does not exempt humanitarian exports to Iran, allowed under the US sanction regime earlier, and India's exports are fully compliant with them, Indian exports to the United States could face an additional 25 per cent tariff.
India's top exported products to Iran were cereals, animal fodder, tea and coffee, spices, fruits and vegetables, and pharmaceuticals. The main imports from India include dry fruits, inorganic/organic chemicals and glassware.
A key aspect of India-Iran ties is the joint development of the Chabahar port. Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the port is being developed by India and Iran to boost connectivity and trade ties.
While India has not reacted officially to Trump's additional tariff, China warned the US of countermeasures to protect its interests. “There are no winners in a tariff war, and China will firmly safeguard its own legitimate and lawful rights and interests,” Chinese Foreign Ministry spokesperson Mao Ning said while reacting to Trump's threat.
The death toll from nationwide protests in Iran surpassed 2,000 people on Tuesday, which led to Trump cancelling his meeting with Iranian officials. The US President declared that American help is on the way.
"Iranian Patriots, keep protesting - take over your institutions!!!", Trump said in his latest post on his Truth Social platform, encouraging Iranian protesters. He also promised US help to the protestors, without offering details.
Iranian foreign minister Abbas Araghchi, however, said he had continued to communicate with US envoy Steve Witkoff.
Iran's major trading partners are China, Turkey, India, the UAE, Pakistan and Armenia.
Though sources in the Indian government said the announcement is likely to have a minimal impact, as India’s trade with Iran is already “negligible”, exporters are keeping their fingers crossed as the Trump administration has not issued a notification on the additional tariff with full details.
Federation of Indian Export Organisations (FIEO) said Indian companies and banks are in full and demonstrable compliance with OFAC (Office of Foreign Assets Control) sanctions on Iran, engaging exclusively in clearly permitted humanitarian trade, mainly in food and pharmaceuticals. However, FIEO director-general Ajay Sahai said that an explicit clarification is needed to remove any ambiguity over whether the issue will affect India.
Indian exporters are already reeling under the impact of the steep 50 per cent tariffs imposed by the US. If the Trump administration does not exempt humanitarian exports to Iran, allowed under the US sanction regime earlier, and India's exports are fully compliant with them, Indian exports to the United States could face an additional 25 per cent tariff.
India's top exported products to Iran were cereals, animal fodder, tea and coffee, spices, fruits and vegetables, and pharmaceuticals. The main imports from India include dry fruits, inorganic/organic chemicals and glassware.
A key aspect of India-Iran ties is the joint development of the Chabahar port. Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the port is being developed by India and Iran to boost connectivity and trade ties.
While India has not reacted officially to Trump's additional tariff, China warned the US of countermeasures to protect its interests. “There are no winners in a tariff war, and China will firmly safeguard its own legitimate and lawful rights and interests,” Chinese Foreign Ministry spokesperson Mao Ning said while reacting to Trump's threat.
The death toll from nationwide protests in Iran surpassed 2,000 people on Tuesday, which led to Trump cancelling his meeting with Iranian officials. The US President declared that American help is on the way.
"Iranian Patriots, keep protesting - take over your institutions!!!", Trump said in his latest post on his Truth Social platform, encouraging Iranian protesters. He also promised US help to the protestors, without offering details.
Iranian foreign minister Abbas Araghchi, however, said he had continued to communicate with US envoy Steve Witkoff.
( Source : Deccan Chronicle with agency inputs )
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