From Ukraine to Iran, every global crisis seems to come with consequences for India. On Tuesday, Trump’s decision to impose a 25% tariff on Iran’s trade partners has again placed India in US’s line of fire.
It seems wherever there is a crisis, be it in Iran or Ukraine, US President Donald Trump always finds a reason to target India. Hours after sweet talk by US Ambassador-designate Sergio Gor of India being the “most essential partner” of the US, his boss, Trump, imposed a new 25% tariff on countries doing trade with crisis-hit Iran — a move set to impact New Delhi severely. India, which is among Iran’s top five trading partners, may see its tariffs on US imports surge to a whopping 75%.
Tightening the noose around Iran, which is witnessing its biggest anti-government protest in years, Trump said any country doing business with Iran would “immediately” face a 25% tariff on trade with the US. “This order is final and conclusive,” Trump underlined.
Now, without a trade deal with the US, Indian goods are already facing the highest US tariff rate of 50%. Apart from a 25% reciprocal duty, Trump slapped an additional 25% punitive levy on India over its continued purchase of Russian oil. A further 25% duty will take the total tariffs on Indian imports to the US to 75%.
There is also the spectre of a US bill that proposes 500% tariffs on countries continuing to purchase Russian oil despite sanctions. Trump has already approved the bill that targets countries like India, China, and Brazil.
New Delhi has long-standing trade and strategic links with Tehran, including energy imports and the development of the strategically vital Chabahar Port, seen as India’s gateway to Afghanistan and Central Asia that bypasses Pakistan.
TIMING RAISES EYEBROWS
Though China is Iran’s biggest trading partner, Trump’s move has consequences for India, beyond trade as well. The timing of Trump’s announcement is important, coming hours before Indian and US officials sat down for another round of negotiations over the long-pending trade deal.
The fresh tariff announcement is being viewed by a section of experts as another pressure tactic to get India to agree to US terms on the trade deal.
Recent revelations by US Commerce Secretary Howard Lutnick have already shown how Trump can make a country pay for not massaging his ego or doing his bidding.
Last week, Lutnick revealed that the trade deal between India and the US failed to materialise, not because of policy issues, but due to Prime Minister Narendra Modi’s refusal to directly call Trump and seal it.
