Exporters are keeping their fingers crossed on the impact of the recent announcement made by US President Donald Trump that Washington will impose additional 25 per cent duty on countries trading with Iran.
The exact impact of the additional tariff will be only known after a notification is issued by the Trump administration, said exporters. Indian exporters are already reeling under the impact of the steep 50 per cent tariffs imposed by the US.
Trump has announced that any country doing business with Iran will have to pay a 25 per cent tariff on its trade with Washington, a move that could impact Tehran's major trading partners such as India, China and the UAE.
Exporters' body FIEO on Tuesday said domestic firms are complying with all sanctions related to trade with Iran, but a clarification on Trump's announcement that countries trading with Iran may face a 25 per cent tariff would help assess the impact of the warning.
The announcement by Trump could impact India-Iran trade relations. "Indian companies and banks are in full and demonstrable compliance with OFAC (Office of Foreign Assets Control) sanctions on Iran, engaging exclusively in clearly permitted humanitarian trade, mainly in food and pharmaceuticals. There is, therefore, no basis to anticipate any adverse impact on India," Federation of Indian Export Organisations (FIEO) director general Ajay Sahai said.
"We are concerned about the announcement by the US President. We are awaiting a notification regarding this by the US, " said an exporter.
Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery and artificial jewellery, while major imports consist of dry fruits, inorganic/organic chemicals and glassware.
A key aspect of India-Iran ties is the joint development of the Chabahar port. Located in the Sistan-Balochistan province on the energy-rich Iran’s southern coast, the port is being developed by India and Iran to boost connectivity and trade ties.
India's merchandise exports to Iran rose by 1.55 per cent to USD 1.24 billion in 2024-25, while imports dipped by 29.32 per cent to USD 441.83 million.
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