Trump’s Iran-Linked Tariff Threat Likely to Have Limited Impact on India
U.S. President Donald Trump’s renewed threat of imposing tariffs linked to Iran is expected to have a limited impact on India, given the sharp decline in bilateral trade between New Delhi and Tehran over the past few years. India’s trade with Iran fell significantly after 2019, following the imposition of stringent U.S. sanctions, which curtailed oil imports and restricted financial transactions.
Even before the sanctions, India-Iran trade volumes were relatively modest compared to India’s commerce with major global partners. Experts note that Indian businesses have already adjusted to reduced engagement with Iran by diversifying energy sources and trade routes. As a result, any new tariff-related measures are unlikely to disrupt India’s broader trade or economic stability.
Analysts also point out that India has been cautious in aligning its trade policies with international sanctions regimes while safeguarding strategic interests. Overall, Trump’s latest tariff warning is seen more as a political signal than a development with substantial economic consequences for India.
