The Indian government on Tuesday said that the 25 per cent tariffs imposed by the United States on Iran’s major trade partners are unlikely to have a significant impact on India, citing limited trade exposure and diversified economic linkages.
The Indian government on Tuesday sought to allay concerns among exporters, saying that the 25 per cent tariffs imposed by the United States on Iran’s major trade partners are expected to have minimal impact on India due to limited exposure and diversified trade linkages, say reports.
India’s trade with Iran remains modest and is not expected to be significantly affected by the US measures announced by President Donald Trump on Monday. Iran does not figure among India’s top 50 trading partners. Last year, bilateral trade stood at USD 1.6 billion, or roughly 0.15 per cent of India’s total trade.
By comparison, Iran’s total imports were estimated at around USD 68 billion in 2024, with its major partners including the UAE ($21 billion, 30 per cent), China ($17 billion, 26 per cent), Turkiye ($11 billion, 16 per cent), and the European Union ($6 billion, 9 per cent), highlighting India’s relatively small share.
Exporters express concern over rice shipments
India is Iran’s largest supplier of rice, with Tehran sourcing nearly two-thirds of its rice from the country. Following Trump’s announcement, some Indian exporters have become reluctant to sign new contracts.
“The proposed 25 per cent levy under the Trump framework adds an additional challenge to the Indian basmati rice sector,” said the head of bulk exports at a leading rice exporter.
Another New Delhi-based exporter expressed concern over pending payments and delivery issues: “In some cases, buyers report they did not receive the full quantity; in others, they have fled the country because of the ongoing protests,” he told Reuters.
Global implications
Trump’s move is expected to put China in a difficult position, as it is one of Iran’s largest trading partners. In 2022, Iran exported $22 billion worth of goods to China, more than half of which was fuel, while imports from China stood at $15 billion. In 2025, China accounted for over 80 per cent of Iran’s shipped oil, according to analytics firm Kpler.
US sanctions have limited Iran’s pool of oil buyers, aiming to restrict funding for Tehran’s nuclear programme, and Trump’s new tariffs add an extra layer of complexity for international trade with Iran.
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