India’s trade with Iran is minimal at $1.6B, so Trump’s 25% tariff on countries trading with Tehran is unlikely to impact India significantly.

India’s commercial exposure to Iran is minimal, and as a result, it is unlikely to suffer any significant consequences from President Donald Trump’s decision to impose a 25% tariff on countries trading with Tehran, official sources said on Tuesday.

Officials underlined that Iran is not among India’s top 50 commercial partners. Bilateral commerce totaled at $1.6 billion last year, accounting for approximately 0.15 percent of India’s total trade volume. According to insiders, this figure is anticipated to fall further in the coming fiscal year due to current global economic challenges.

They noted that Iran’s import basket is controlled by a small number of partners. In 2024, Iran imported over $68 billion in commodities, with the UAE as the main provider at $21 billion (30%), followed by China at $17 billion (26%), Turkey at $11 billion (16%), and the European Union at $6 billion (9%).

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In comparison, India’s contribution to Iran’s imports is minimal, at around $1.2 billion, or 2.3 percent, according to the sources.

The remarks came after US President Donald Trump announced a comprehensive trade measure targeting at countries that, in his words, “continue to do business with Iran,” imposing a 25% penalty on any commercial transactions with the US.

Trump announced the move on Truth Social, saying it will take effect immediately and leave no room for negotiation. “Effective immediately, any country doing business with the Islamic Republic of Iran shall pay a 25% tariff on all transactions conducted with the United States of America. This order is definitive and decisive. “Thank you for your attention to this matter,” Trump wrote in his message.