US President Donald Trump has announced a 25 percent tariff on any country conducting trade with Iran, escalating pressure on Tehran in response to its violent suppression of nationwide protests that have left nearly 600 dead and resulted in thousands of arrests. The move could affect major trading partners of Iran, including India and China.
“Effective immediately, any country doing business with the Islamic Republic of Iran will pay a 25 percent tariff on all trade with the United States. This order is final and conclusive,” Trump said on Truth Social.
The announcement comes as Trump considers possible military action against Iran. White House Press Secretary Karoline Leavitt confirmed that air strikes remain one of several options on the table. At the same time, Iran maintains diplomatic contact with Trump’s special envoy Steve Witkoff and has reportedly adopted a more conciliatory tone in private discussions than in public statements.
Impact on India
While China is Iran’s largest trading partner, the new tariffs will also affect India, the UAE, and Turkey. According to the Indian Embassy in Tehran, India’s exports to Iran in fiscal year 2024-25 were valued at $1.24 billion, with imports totaling $0.44 billion, making overall trade around $1.68 billion (approximately Rs 14,000–15,000 crore).
India’s top exports to Iran included organic chemicals ($512.92 million), edible fruits and nuts ($311.60 million), and mineral fuels and oils ($86.48 million). Additional US duties could raise tariffs on Indian goods tied to Iranian trade to as high as 75 percent, following prior US levies of up to 50 percent on items related to Russian oil purchases.
The potential impact is further complicated by an upcoming US Supreme Court ruling on the legality of Trump’s global tariffs. If the court rules against him, it could limit his ability to enforce duties on Iran’s trading partners.
Protests in Iran
The protests in Iran began amid a currency crisis and worsening economic conditions but have grown into a widespread challenge to the regime of Supreme Leader Ayatollah Ali Khamenei. The demonstrations represent the largest domestic unrest in the country since 1979, with hundreds of thousands participating over recent weekends. Human rights groups report nearly 600 deaths and over 10,000 arrests.
Trump has expressed support for the protesters and warned Iran against further violence. He confirmed that his administration is evaluating “strong options,” including potential military strikes on both military and non-military targets, and is coordinating with allies in response to the ongoing crisis.
