Trump’s Iran Tariff: A 25% Penalty Raises 75% Trade Wall for India
US President Donald Trump addresses a press conference after military attacks on Venezuela. (Image White House on X)
A sweeping order targeting Iran’s trading partners risks detonating US–India ties while reshaping global commerce
TRH News Desk
New Delhi, January 13, 2026 — US President Donald Trump has once again jolted global markets with a blunt-force policy announcement. In a post on Truth Social, Trump declared: “Effective immediately, 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.”
The implications are staggering. The order is not narrowly targeted at Tehran—it is a secondary sanctions weapon, aimed at Iran’s trading partners. For India, the fallout could be especially severe. As foreign policy expert Evan A. Feigenbaum pointed out on X, India already faces 50% US tariffs—the highest imposed on any country. Layering an additional 25% could push Indian exports into a punitive 75% tariff regime.
“It’s not as if there was much of a relationship left to tank,” Feigenbaum wrote, “but still…”
Nor is India alone. China, Turkey, and the UAE—all major trading partners of Iran—would also be hit. The message is unmistakable: align with Washington’s Iran policy or pay a steep economic price.
What raises further alarm is that this tariff threat comes alongside a proposed bill floating penalties as high as 500% for those who trade with Russia, suggesting an escalation from economic pressure to outright trade coercion. Such measures risk fracturing supply chains, inflaming inflation, and accelerating global de-dollarisation.
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