• Source:JND

New Delhi: In another blow to Iran, US President Donald Trump said on Monday any country that does business with Iran will face a tariff rate of 25 per cet on trade with the US. The latest crackdown on Tehran came as Washington weighs a response to the situation in Iran, which is seeing its biggest anti-government protests in years. According to the US data, more than 600 protestors were killed in the past few weeks.

“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,” Trump said in a post on Truth Social.

Tariffs are paid by US importers of goods from those countries. Iran has been heavily sanctioned by Washington for years.

“This order is final and conclusive,” Trump said without providing any further detail. Top export destinations for Iranian goods include China, the United Arab Emirates and India.

75 per cent tariff on India

The latest tariff will hit India hard as it is already facing a 50 per cent tariff imposed by Trump in April last year. The latest tariff on India means, New Delhi has to pay 75 per cent tariff while trading with Washington.

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There was no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use to impose the tariffs, or whether they would be aimed at all of Iran’s trading partners. The White House did not respond to a request for comment.

Iran, which had a 12-day war with US ally Israel last year and whose nuclear facilities the US military bombed in June, is seeing its biggest anti-government demonstrations in years.

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Impact of Trump's tariff on India

1. According to the Ministry of External Affairs, India and Iran are important trade partners. India has been among Iran’s five largest trade partners in recent years.

2. Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery, artificial jewellery etc, while major Indian imports from Iran consist of dry fruits, inorganic/organic chemicals, glassware, etc.

3. According to the last data uploaded on the Indian Embassy in Tehran, India-Iran bilateral trade during the financial year 2022-23 was $2.33 billion, registering a growth of 21.76 per cent YOY.

4. During the period, India’s export to Iran was $1.66 billion (a growth of 14.34 per cent) and India’s import from Iran was $ 672.12 million (a growth of 45.05% ).

5. In the fiscal year April 2023- July 2023, bilateral trade stood at USD 660.70 million. During the period, Indian exports amounted to USD 455.64 million; and Indian imports amounted to USD 205.14 million. However, total trade decreased by 23.32 per cent as compared to the corresponding figure of the previous year.

(With inputs from agency)


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