India is unlikely to face any major economic consequences from the United States’ newly announced tariffs on countries that continue to trade with Iran, according to a government source. India’s trade relationship with Iran is too small to trigger any serious fallout.

The assessment follows US President Donald Trump’s announcement of a new trade order. The order imposes a 25 per cent tariff on all goods entering the United States from countries that maintain business ties with Iran. The move has raised concerns among several global trading partners, including India.

Iran Not a Major Trading Partner for India

Despite the concerns, the government source said Iran does not feature among India’s top 50 trading partners worldwide. Last year, India’s total trade with Iran stood at around $1.6 billion.

This figure accounted for only about 0.15 per cent of India’s overall global trade, underlining the limited scale of economic engagement between the two countries.

“India’s trade exposure to Iran is extremely limited,” the source said. The official added that trade levels are likely to fall further in the current financial year due to broader external economic pressures.

Iran’s Import Profile Shows India’s Small Share

In 2024, Iran’s total imports were estimated at about $68 billion. The country’s largest import partner was the United Arab Emirates, with imports worth $21 billion, or 30 per cent of the total.

China followed with $17 billion, accounting for 26 per cent, while Türkiye contributed $11 billion, or 16 per cent. Imports from the European Union stood at around $6 billion, or 9 per cent.

India’s share of Iran’s imports was much smaller. It amounted to roughly $1.2 billion, or about 2.3 per cent of Iran’s total imports.

Tariff Impact on India Expected to Be Minimal

Given these numbers, the government source said the 25 per cent tariff announced by Washington is expected to have a negligible effect on India. Officials believe the limited scale of bilateral trade significantly reduces any risk from the new US measures.

India Already Facing Other Trade Pressures

The development comes at a time when India is already dealing with trade-related pressure from the United States. This includes tariffs of up to 50 per cent linked to India’s purchases of Russian oil.

Even so, officials said India’s minimal commercial engagement with Iran lowers the likelihood of further economic impact from the latest USdecision.

Trump Calls Tariff Decision “Final and Conclusive”

Donald Trump described the new tariff order as “final and conclusive.” He said the measures would take effect immediately. However, he did not explain how the tariffs would be enforced or whether any exemptions would be granted.

The announcement comes amid ongoing unrest in Iran. Protests have erupted against the current regime led by Ali Khamenei, with demonstrators calling for greater political freedoms and reforms.