Basmati rice, tea, coffee, spices - Trump's latest 25% tariff threat puts India-Iran trade in limelight

US President Donald Trump has threatened countries that trade with Iran, putting at risk the trade relations of Tehran with several countries, including India and China.

Trump posted on social media on Monday that the new duty would be “effective immediately”, but did not provide any details about the scope or implementation of the charges.

“Any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive,” he said.

Trump's latest tariff blow has the potential to disrupt some of the major global trade routes, including India's partnership with Iran. New Delhi has been a major trading partner of Tehran.

Iran-India trade

New Delhi and Tehran's trade relations go way back. India's merchandise exports to Iran rose by 1.55% to $1.24 billion in 2024-25, while imports dipped by 29.32% to $441.83 million, according to government data.

Here is a breakdown of India and Iran trade —

India's export to Iran

• Rice: Iran is India's top basmati rice export destination. India exported $468.10 million worth of basmati rice to Iran during April-November of 2025-26 fiscal, totalling 5.99 lakh tonnes, trade data showed.

• Tea, coffee and spices: Tea, coffee and spices are also some of the major items Iran imports from India. As per government data, India exported $70 million worth of tea, coffee and spices to Iran in fiscal 2024-25.
• Fruits and nuts: India also exports fruits and nuts to Iran, sending $55.91 million worth of such items to Tehran in FY25.
• Meat: India's meat export to Iran fell in FY25 but remained a significant item of trade. As per government data, the country exported $14.07 million worth of meat to Iran in FY25.
• Cereals: Cereal export to Iran was the highest among other items last fiscal, as per government data, with India exporting cereals worth $757 million to the Islamic Republic.
• Pharmaceutical products: Pharmaceutical product export increased by 116% year-on-year in FY25, as per government data. Pharma exports accounted for $28.29 million last fiscal.
• Clothing and accessories: Clothing and accessories, as well as yarn and wool, remained one of the major export items from India to Iran in FY25.

Imports from Iran

During 2022, Iran's exports to India were valued at $1.89 billion, according to the United Nations COMTRADE database on international trade.

• Organic chemicals: As per COMTRADE data, organic chemical exports to India were the highest among all products in 2022. Iran exported $486.47 worth of organic chemicals to India.
• Nuts: Nuts account for a significant chunk of Iran's exports to India.
• Mineral fuels, oils, distillation products: In 2022, Iran exported mineral fuels and oils worth $408.56 million, according to COMTRADE data.

A key aspect of India-Iran ties is the joint development of the Chabahar port. Located in the Sistan-Balochistan province on the energy-rich Iran’s southern coast, the port is being developed by India and Iran to boost connectivity and trade ties.