India to cut trade with Iran following US additional tariffs

India plans to cut trade with Iran after the United States imposed additional 25% tariffs on countries doing business with Tehran, according to government sources.

New Delhi will reduce trade with Iran by the end of the current financial year, which concludes on March 31, citing “external economic factors,” Caliber.Az reports via Indian media.

Moreover, pressure from Washington on Tehran has cast doubt on the planned visit to New Delhi by Iran’s Foreign Minister Abbas Araghchi, which was scheduled for January.

Earlier, US President Donald Trump announced the imposition of 25% tariffs on all countries cooperating with Iran, emphasising that the decision takes effect immediately and is non-negotiable.

Data from the Federation of Indian Export Organisations shows that India’s total trade with Iran in the 2024–2025 financial year amounted to $1.68 billion, with $1.24 billion accounted for by Indian exports, mainly agricultural products.

By Jeyhun Aghazada