New US levies on Iran ties may lift total Indian export duties to 75%, threatening agricultural and maritime trade.
United States President Donald Trump has mandated a 25 percent tariff on all nations maintaining commercial relations with Iran. This directive, issued on 12 January 2026, carries immediate legal weight and threatens to escalate the total American duties on certain Indian commodities to a staggering 75 per cent. This cumulative figure incorporates the new levy alongside existing 25 per cent reciprocal taxes and a 25 per cent penal duty linked to energy imports from Russia.
The primary trade impact is expected within the agricultural and industrial sectors. In the 2024-25 financial year, bilateral trade between India and Iran reached 1.68 billion dollars, with Indian exports accounting for 1.24 billion dollars. The new trade barrier places high-volume exports such as basmati rice, tea, sugar, and organic chemicals at significant risk. Furthermore, the pharmaceutical and electrical machinery industries face increased costs that could render Indian goods uncompetitive in the American market.
Strategic maritime interests are also jeopardised. The operational future of the Chabahar Port, previously protected by specific carve-outs, is now uncertain as the broad scope of this mandate may nullify existing exemptions.
While the United States Supreme Court is currently reviewing the constitutional authority of the administration to bypass traditional trade legislation, the Indian Rice Exporters Federation has advised businesses to secure payment guarantees immediately to offset the volatility caused by this abrupt policy shift.
SOURCE – NDTV
