US Iran Trade Tariff: US President Donald Trump has decided to impose heavy tariffs on many countries. Because of which he constantly remains in the headlines of newspapers. In this context, he has recently issued a new decree indicating the imposition of 25 percent tariff on countries doing business with Iran.

This step has been taken in view of the anti-government protests in Iran and the situation there. But its impact will not be limited to Iran only. This decision may also hit the pockets of the common people of America. Due to this step, clothes, jewelery and many daily use items may become expensive in America in the coming time.

Iran’s economy under pressure due to tariff decision

Iran may have to face a lot of trouble due to this step of America. There are already many types of sanctions imposed on Iran. The inflation rate in the country remains above 40 percent. There is also a possibility of increase in the prices of foreign goods. Despite these situations arising in the country, the Iranian government does not seem to be coming under American pressure.

Why might inflation increase in America?

This decision on tariff may increase inflationary pressure in America. Countries doing business with Iran include Türkiye, India, China and UAE. From which America imports goods in large quantities.

There is a possibility of increase in tariffs on textiles and clothing from Türkiye, precious gems and jewelery from India and electronics goods from China. In such a situation, American customers may ultimately have to bear the burden of increasing prices of these goods.

Legal dilemma over tariffs

It has not yet been made clear by the Trump government whether the new tariffs will be imposed on top of the existing charges or will be implemented separately. Apart from this, questions remain on the legal validity of these tariffs.

This case is currently undergoing hearing in the US Supreme Court. If the court rules against the tariffs, the government may have to return large amounts of money to companies as refunds.

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US Iran Trade Tariff: America has warned of imposing 25 percent additional tariff on countries doing business with Iran. Due to which there has been a stir in the business world globally. This step may affect countries like Brazil, China as well as India.

This can have a deep impact on the trade relations between India and Iran. Due to America’s tariff decision, India may have to take steps to balance its imports and exports. Let us know, how are the trade relations between the two countries?

75 percent tariff may be imposed on India

Iran has been an important trade partner of India for a long time. But now America has announced to impose 25 percent additional tariff on countries doing business with Iran. Due to which its impact can be seen on India also.

The new tariff is in addition to the 50 percent tariff already imposed by the US. This means that overall there may be a possibility of up to 75 percent trade tariff being implemented for India.

These things are traded between India and Iran

India has been included in the top five trading partner countries of Iran. The major products sent from India to Iran include Basmati rice, tea, sugar, fresh fruits, medicines, cashew nuts, peanuts, pulses and other agricultural and food items.

On the other hand, India imports products like methanol, petroleum bitumen used in road construction, apples, LPG, dry dates and almonds from Iran.

India-Iran trade statistics

Talking about the trade figures between the two countries, the total trade between India and Iran in the financial year 2022-23 has been $2.33 billion. Which shows an increase of about 22 percent compared to a year ago. During this period, India exported $1.66 billion to Iran. Whereas India’s import from Iran stood at $672.12 million.

Meanwhile, between April 2023 and July 2023, the total trade between the two countries was recorded at $660.70 million. In which India’s export was 455.64 million dollars and import was 205.14 million dollars.

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