India US Trade: US President Donald Trump has announced to impose 25 percent tariff on countries doing business with Iran. Trump has clearly said that America will increase tariffs on any country that does business with Iran. This step is being seen as a strategy to increase economic pressure on Iran. Violent protests have been going on in Iran for more than two weeks and Trump has been continuously warning the Iranian government about these protests.
Donald Trump wrote on his social media platform Truth Social on Monday that a 25 percent tariff will be immediately implemented on those doing business with Iran. This decision of Trump can have an impact on many countries of the world, including India and China. America has already imposed 50 percent tariff on India. In such a situation, the new tariff may increase further tension in India-US relations.
What will be the impact on India?
China is considered Iran’s biggest trading partner, but this decision is likely to impact India, United Arab Emirates and Türkiye as well. These countries are also among the major trading partners of Iran.
According to the Indian Embassy in Iran, in the financial year 2024-25, India exported goods worth $ 1.24 billion to Iran, while imported goods worth $ 0.44 billion from Iran. In this way, the total trade between the two countries was 1.68 billion dollars (about Rs 14,000 to 15,000 crore).
Which goods are traded the most?
According to Trading Economics report, the largest share in India’s exports to Iran was organic chemicals, which was worth $512.92 million. After this, edible fruits, nuts, peels of citrus fruits and melons were worth about 311.60 million dollars. Whereas the business of products related to mineral fuel, oil and distillation was worth 86.48 million dollars.
Tariff has been imposed on India
America has already imposed a tariff of up to 50 percent on Indian goods in cases related to purchasing oil from Russia. In such a situation, if USA imposes an additional tariff of 25 percent on India on trade with Iran, then the total will become 75%. Now additional tariffs may further affect trade between the two countries. The special thing is that India and America have been working for the last several months on such an agreement, by which India can get relief in tariffs.
Supreme Court’s decision is important
An important decision of the Supreme Court of America is also going to come on this whole matter. The court will decide whether the global tariffs imposed by Trump are legal or not. If the court rules against Trump, his ability to quickly impose tariffs on Iran’s trading partners could be affected. The next decision of the Supreme Court is expected on Wednesday.
