Trump announces 25 percent tariff on countries that trade with Iran, how will it impact India?
US President Donald Trump has announced a 25 percent tariff on countries that conduct trade with Iran.
In a post on Truth Social on Monday, Donald Trump wrote, "Any country doing business with Iran will immediately be subject to a 25 percent tariff on all trade with the United States. This order is final."
China, UAE, and India are Iran's major trading partners.
Trump's announcement comes amid ongoing anti-government protests in Iran. Trump has previously stated that he is considering some very strong options regarding Iran.
Iran's largest trading partner is China, followed by Iraq, the United Arab Emirates, Turkey, and India.
The imposition of tariffs could affect these countries' trade with the United States.
This decision comes at a time when anti-government protests are ongoing in Iran. More than 600 people have been killed in these protests.
On the other hand, the value of the Iranian currency, the rial, has now fallen to almost zero. In Indian currency, the value of 1 rial is only 0.000079 rupees.
According to available World Bank data from 2022, Iran traded most with China, the UAE, and India. Iran primarily exports oil, petrochemicals, and industrial products to these countries. Despite US sanctions, Iran continues its trade through Asia and the Gulf countries.
In 2022, Iran's total trade was approximately $140 billion. This included exports of $80.9 billion and imports of approximately $58.7 billion.
The largest share of Iran's exports consists of crude oil, petroleum products, and natural gas. In addition, petrochemicals, steel, copper, agricultural products, and minerals are also exported.
Iran primarily imports machinery, electronic equipment, industrial raw materials, and pharmaceuticals.