25% Trump Tariffs On Iran's Trade Partners Likely To Have Minimal Impact On India: Govt Sources

Last Updated:January 13, 2026, 18:51 IST

India’s total trade with Iran stood at about $1.6 billion last year- roughly 0.15 per cent of India’s overall trade volume.

US President Donald Trump

India is unlikely to face any significant economic impact from the United States’ newly announced tariffs targeting countries that trade with Iran, as bilateral trade between New Delhi and Tehran remains minimal, a government source told CNN-News18.

The assessment follows an announcement by US President Donald Trump, who unveiled a new trade order imposing a 25 per cent tariff on all US-bound goods from countries that continue to do business with Iran. The move raised concerns among several global trading partners, including India.

However, a government source said Iran does not even feature among India’s top 50 global trading partners. India’s total trade with Iran stood at about $1.6 billion last year- roughly 0.15 per cent of India’s overall trade volume.

“India’s trade exposure to Iran is extremely limited," the source said, adding that trade levels are expected to decline further in the current financial year due to external economic factors.

In 2024, Iran’s total imports were estimated at around $68 billion. Its major import partners were the United Arab Emirates at $21 billion (30 per cent), China at $17 billion (26 per cent), Türkiye at $11 billion (16 per cent),= and the European Union at $6 billion (9 per cent). India’s share of Iran’s imports was only about $1.2 billion, accounting for roughly 2.3 per cent.

Given these figures, the 25 per cent tariff announced by Washington is expected to have a negligible effect on India, the source said.

The development comes at a time when India is already dealing with elevated trade pressures from the United States, including tariffs of up to 50 per cent linked to its purchases of Russian oil. Despite this, officials indicated that India’s limited commercial engagement with Iran significantly reduces any potential fallout from the latest US measures.

Government officials said New Delhi continues to closely monitor the evolving trade situation but does not anticipate any major disruption to India’s external trade flows as a result of the new US order.

News india 25% Trump Tariffs On Iran's Trade Partners Likely To Have Minimal Impact On India: Govt Sources

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