US President Donald Trump has taken a very strict and big step to tighten the economic noose on Iran. He has clearly announced that any country that has any kind of trade relations with Iran will have to pay a huge tariff of 25 percent on doing business with America. While sharing information about this decision on the social media platform ‘X’, Trump has described it as a final order, which has intensified the stir in the global business world.
Trump’s ultimatum to put pressure on Iran, said the order is final and irreversible
President Trump has bluntly said that no changes or concessions will be made in this decision in future. He made it clear that nations that continue trade with Tehran will have to pay an additional 25 percent duty to do business with the US. This step has been taken directly with the aim of creating maximum economic pressure on the Iranian government, so that it can be isolated on the international stage.
Amidst the ongoing protests in Iran, a strict message to the government, it will have to pay a heavy price for suppressing the public’s voice.
This decision has come at a time when protests are continuing inside Iran. After meetings with Iranian officials, Trump expressed concern that extreme strictness is being taken against the protesters there, which is a serious issue. He warned that Iran will now have to pay a heavy price for its efforts to suppress the voice of the Iranian people. This tough stance of America is being considered as part of the strategy to corner Iran on the issue of human rights.
India’s export of basmati rice and tea is under threat, import of dates and dry fruits may also be affected
The direct impact of this decision can be seen on the bilateral trade between India and Iran. At present India mainly imports dates, dry fruits and some petrochemical products from Iran. At the same time, Basmati rice, tea, sugar and other food items are sent to Iran from India. Iran is considered a huge market especially for Basmati rice, so the threat of 25 percent tariff could become a matter of concern for Indian exporters.
Due to sanctions, trade between the two countries is continuously decreasing, a decline of billions of dollars has been recorded in the last six years.
Statistics show that due to international sanctions the scope of trade between India and Iran has already reduced considerably. While trade between the two countries was at a high of $17.03 billion in the financial year 2018-19, it has declined drastically after the stoppage of oil imports. In the financial year 2024-25, this figure has come down to only 1.68 billion dollars. Earlier it was $1.85 billion in 2023-24 and $2.33 billion in 2022-23.
Difficulties will increase for many countries including China and European Union, instability in global markets and fear of rise in crude oil prices.
The biggest blow to Trump’s decision may fall on China, which is Iran’s largest oil buyer and trading partner. Apart from this, it will also have a huge impact on the trade of European countries like Germany and Italy, neighboring countries like Turkey, Russia and Pakistan. Experts believe that this decision will create instability in the global markets and fluctuations in crude oil prices may be seen. It will now be a big challenge for countries like India to maintain diplomatic and trade balance between America and Iran.
