Bilateral
US tariff threats put India-Iran trade at risk – Chabahar Port becomes the high-stakes battleground!
New Delhi/IBNS: Amid ongoing 50% tariffs on Indian exports to the US, President Donald Trump’s renewed sanction threat on countries doing business with Iran could hit India once again, media reports said.
Trump recently warned that any country trading with Iran could face an additional 25% tariff.
India is among Iran’s top trade partners, alongside China, Turkey, the UAE, Pakistan, and Armenia.
Major Indian exports to Iran include basmati rice, tea, sugar, fresh fruits, and pharmaceuticals, while imports from Iran include apples, kiwi, and pistachios.
According to Business Today, Indian exports to Iran amounted to $1.24 billion in 2024–2025, while imports stood at $440 million, bringing total bilateral trade to $1.68 billion, down from $1.85 billion in 2023–2024.
Chabahar Port
India and Iran’s Chabahar Port partnership remains active and strategically important, but its future depends on diplomacy, sanctions, and negotiations.
India signed a 10-year contract in 2024, giving India Ports Global Ltd the rights to equip and operate the Shahid Beheshti terminal, with plans to boost capacity and improve connectivity to Afghanistan and Central Asia.
However, U.S. sanctions on Iran remain a challenge. Washington recently revoked its long-standing sanctions waiver for Chabahar, complicating foreign involvement.
In response, India secured a six-month U.S. sanctions exemption into early 2026, allowing continued operations and development while engaging with Washington to clarify trade and sanctions rules.
Upcoming high-level diplomatic talks between Indian and Iranian officials are expected to focus on sustaining and potentially expanding India’s role at Chabahar, even as geopolitical pressures and Iran’s internal instability add uncertainty to the deal’s long-term trajectory.
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