The announcement by former U.S. President Donald Trump to impose a 25% tariff on countries that continue trading with Iran has triggered fresh uncertainty in global trade and could also affect India. At present, the United States has not imposed any new blanket tariff on all Indian exports. However, certain Indian products—especially those linked to the purchase of crude oil from Russia—are already facing tariffs of up to 50%. It is still unclear whether the newly announced 25% tariff related to Iran would be imposed in addition to the existing duties or be adjusted within the current 50% structure. If the additional tariff is applied separately to India due to its trade with Iran, the total duty on some Indian products could rise to as high as 75%. This would make Indian exports, particularly basmati rice, significantly more expensive in the U.S. market. According to data from the Indian Embassy in Tehran, total trade between India and Iran during the financial year 2024–25 stood at USD 1.68 billion (approximately ₹14,000–15,000 crore). Of this, India’s exports accounted for USD 1.24 billion, while imports were valued at USD 0.44 billion. Major Indian export items to Iran include organic chemicals, basmati rice, fruits and dry fruits, and mineral oils—products that could be directly impacted by higher tariffs. If Indian goods become more expensive in the U.S. market, demand is likely to weaken, potentially squeezing exporters’ margins and making it harder to secure new orders. This situation could also increase pressure on the ongoing India–U.S. trade negotiations. There is, however, a degree of uncertainty surrounding the implementation of these tariffs. A case challenging the legality of Trump-era global tariffs is currently pending before the U.S. Supreme Court. If the court rules against Trump, imposing new tariffs on Iran’s trading partners may become difficult in the short term. Meanwhile, the internal situation in Iran remains highly volatile. What began as protests driven by economic hardship has escalated into a broader anti-government movement, with reports of hundreds of deaths and thousands of arrests. In response, the U.S. continues to pursue a policy of sustained pressure on Iran. Overall, India is currently facing U.S. tariffs of up to 50% on select products. However, if new Iran-related tariffs are enforced, the risks for Indian exporters could increase further. In such a scenario, India will need to adopt a carefully balanced strategy, keeping in mind its relations with the U.S., Iran, and the evolving global economic environment.