Trump imposes 25% tariff on Iran trade

14-Jan-2026

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India could face a fresh economic and diplomatic test after US President Donald Trump announced a sweeping 25% tariff on any country that continues to do business with Iran, a move that directly targets Tehran’s key trading partners and risks further straining New Delhi–Washington ties.

In a post on his Truth Social platform on January 12, Trump said the tariff would apply “effective immediately” to any and all trade conducted with the United States by countries maintaining commercial relations with the Islamic Republic of Iran. Calling the decision “final and conclusive”, Trump framed it as a pressure tactic against Iran amid escalating unrest there.

For India, the announcement raises serious concerns. New Delhi has long-standing trade and strategic links with Tehran, including energy imports and the development of the strategically vital Chabahar Port, seen as India’s gateway to Afghanistan and Central Asia that bypasses Pakistan.