US President Trump announced a 25% tariff on countries trading with Iran, aiming to pressure Tehran amidst anti-government protests. However, the move is expected to have a limited impact on India’s overall trade, as most of its exports to Iran are humanitarian in nature and already compliant with US sanctions.
India unfazed as US slaps 25% tariff on countries trading with Iran
Indian basmati rice exports are facing a significant setback as payments worth approximately ₹2,000 crore are stuck as protests in Iran have halted trade. Iran, a major buyer, is unable to remit payments or honor contracts. This disruption is causing uncertainty for exporters, impacting basmati rice prices in India’s wholesale markets.
China is now growing and exporting cumin and chillies, key Indian spice exports. This development poses a challenge to India’s global leadership in spices. Chinese spices are often cheaper, even after local processing. This shift’s impact will become visible in the coming seasons. Farmers are planting less due to crop losses and low export prices.
India, US discuss trade, minerals, defence & energy in latest talks between Jaishankar and Rubio
1 week ago
External Affairs Minister S Jaishankar held discussions with US Secretary of State Marco Rubio, covering trade, critical minerals, nuclear cooperation, defense, and energy. Both leaders agreed to maintain ongoing contact on these vital bilateral issues.
India’s trade with Iran is minimal, representing a small fraction of its total commerce. Recent US tariff announcements targeting countries doing business with Iran are not expected to significantly affect India’s economic engagement. Indian exporters remain watchful but composed. Trade with Iran is projected to decline further due to external economic factors.
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US Ambassador designate Sergio Gor announced that trade pact discussions with India will resume Tuesday, aiming to resolve differences beyond tariffs. He emphasised the strong personal relationship between Trump and Modi, highlighting the partnership’s significance beyond trade, encompassing security, technology, and energy cooperation.