Trump-Iran Tariff Threats: A look At Trade Relations Between India And Iran

India’s trade links with Iran are small in headline terms but concentrated in specific goods, a point that has gained relevance after tariff warnings from the United States against countries continuing business with Tehran.

India imported goods worth $441.83 million from Iran in FY25, accounting for 0.06% of total imports. Exports to Iran stood at $1.24 billion, or 0.28% of total exports. The limited scale masks exposure in select segments where Iran accounts for a large share of India’s trade.

The issue followed comments by Donald Trump, who said the United States would impose a 25% tariff on goods from countries doing business with Iran. He said the tariff would apply to business conducted with the United States and would take effect immediately, without detailing implementation.

Iran’s trade partners include major economies such as India, Turkey and China.

Trump's comments came after the United States imposed tariffs of up to 50% on Indian goods linked to Russian oil purchases. India and the United States have been holding talks aimed at securing tariff relief, even as ties with Iran remain under scrutiny.

India relies on Iran for a narrow group of products, including calcined plasters, shelled almonds fresh or dried, and shelled walnuts fresh or dried. Iran accounted for 35% to 50% of India’s imports of these products in FY25, making these supply lines sensitive despite the low overall import share.

India’s exports to Iran include laminated safety glass, soft drinks other than sharbat, other rosin and resin acids, belladonna extracts, diphenoxylate hydrochloride, cotton combing machines, and phenol or pure carbolic acid. Iran absorbed between 20% and 75% of India’s exports in these categories during FY25.