Seeking to calm concerns among Indian exporters, the Centre has said that the additional 25 per cent tariffs announced by the United States on major trade partners of Iran are unlikely to have a significant impact on India, citing limited exposure and diversified trade linkages.
India’s total trade with Iran was valued at around $1.6 billion last year, a relatively small share compared to Iran’s overall import basket, estimated at nearly $68 billion in 2024. Iran’s largest import partners remain the UAE at about $21 billion (30 per cent), followed by China at $17 billion (26 per cent), Türkiye at $11 billion (16 per cent) and the European Union at $6 billion (9 per cent), highlighting India’s marginal position in Tehran’s import profile.
However, concerns have surfaced among Indian rice exporters after former US President Donald Trump announced the proposed tariff on Monday. India is Iran’s largest supplier of rice, with Tehran sourcing close to two-thirds of its rice imports from Indian exporters. The development has led to uncertainty in the sector, with several exporters turning cautious about entering into fresh contracts with Iranian buyers, Reuters reported.
“The proposed 25 per cent levy under the Trump framework adds another layer of pressure on the Indian basmati rice trade,” the head of bulk exports at a leading rice exporting firm told Reuters. A New Delhi-based exporter said there were growing worries over payments for consignments shipped over the past two months.
“In some cases, buyers are claiming they have not received full quantities. In other instances, they have reportedly fled the country amid ongoing protests,” the exporter added.
The tariff move is also expected to put China in a difficult position, given its deep trade ties with Iran. According to World Bank data, Iranian exports to China stood at $22 billion in 2022, with fuel shipments accounting for more than half of the total. Imports from China during the same period were valued at around $15 billion.
More recent data from analytics firm Kpler shows that in 2025, China accounted for over 80 per cent of Iran’s seaborne oil exports. Iranian crude continues to have a limited buyer base due to US sanctions aimed at curbing funding for Tehran’s nuclear programme.