25%, 50% or 75%: How much would be India's tariff burden after Donald Trump's Iran move

Federation of Indian Export Organisations said domestic firms are complying with all sanctions related to trade with Iran. But, they expect clarification on Trump's warning to asses the impact

US President Donald Trump's announcement of 25 per cent tariff on any country that continues to do business with Iran, could have significant implications for major US trading partners, including India.

The announcement of secondary sanctions is aimed at escalating pressure on Tehran amid its violent crackdown on nationwide anti-government protests. Tehran's major trading partners include India, China and the UAE.

This has triggered concerns as the proposed tariff could take India's total tariff burden of 75 per cent.

In August 2025, Trump administration imposed a 50% tariff on India for buying Russian oil (25% base + 25% penalty). The proposed 25 per cent tariff has left exporters and experts worried over its impact on India and its economy.

On Tuesday, PTI reported that exporters' body Federation of Indian Export Organisations said domestic firms are complying with all sanctions related to trade with Iran. But, they expected a clear clarification on Trump's warning to asses the impact.

"Indian companies and banks are in full and demonstrable compliance with OFAC (Office of Foreign Assets Control) sanctions on Iran, engaging exclusively in clearly permitted humanitarian trade, mainly in food and pharmaceuticals. There is, therefore, no basis to anticipate any adverse impact on India," Federation of Indian Export Organisations director general Ajay Sahai said.

Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery and artificial jewellery, while major imports include dryfruits, inorganic/organic chemicals and, glassware.