New Delhi / Washington, January 13, 2026 – The Indian trade landscape has been thrown into turmoil following a “final and conclusive” order from the White House. President Donald Trump has mandated a 25% tariff on all business conducted with the United States by any nation maintaining commercial ties with the Islamic Republic of Iran.
This move is particularly damaging for India, which is already grappling with a 50% tariff wall in the US (25% reciprocal duty and a 25% penalty for Russian crude oil purchases). With the new Iran-linked levy, total tariffs on Indian products could reach 75%. Major exports at risk include Basmati rice, tea, sugar, and pharmaceuticals—sectors where India has been a top-five trading partner for Tehran. Strategic projects, specifically the Chabahar Port, also face fresh uncertainty as New Delhi balances its energy and logistics needs against the threat of being locked out of the American market.
