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US President Donald Trump announces 25% tariff on countries doing business with Iran; Know how it will impact India

The tariff announcement is made as Trump considers potential military actions against Iran due to the ongoing protests. Simultaneously, human rights organizations are reporting a rising number of fatalities.

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US President Donald Trump announces 25% tariff on countries doing business with Iran; Know how it will impact India
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US President Donald Trump announced on Monday that the United States will implement a 25% tariff on any nation engaging in trade with Iran. This move is aimed at increasing pressure on the Islamic Republic, coinciding with escalating protests and reports of a severe crackdown. The crackdown is alleged to have resulted in the deaths of at least 648 people.

In a statement on his Truth Social platform, Trump specified that this tariff would take effect immediately. It would affect all business transactions with the United States by countries that continue to have commercial relations with Iran.

“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. Thank you for your attention to this matter!” Trump said in his post.

Trump's decision could potentially disrupt significant US trading partnerships globally. Iran's commercial allies encompass not only regional countries but also major economies such as India, Turkey, China, and the UAE.

The tariff announcement is made as Trump considers potential military actions against Iran due to the ongoing protests. Simultaneously, human rights organizations are reporting a rising number of fatalities.

How it will impact India?

Trump's decision could impact India, which exports and imports a significant amount of products with Iran.India already faces a 50 per cent tariff on its imports to the US, 25 per cent of which is due to its purchase of Russian oil, which Washington claims fuels Moscow's war efforts in Ukraine.

According to the Ministry of External Affairs (MEA), India and Iran are important trade partners.

India has been among Iran’s five largest trade partners in recent years. Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery, artificial jewellery, etc., while major Indian imports from Iran consist of dry fruits, inorganic/organic chemicals, glassware, etc.

US Republican Senator Lindsey Graham hails Trump's decision

US Republican Senator Lindsey Graham praised the Trump decision to impose 25% tariffs, saying that the US President's decision in "isolating" the Khamenei regime economically is most impressive.

Sharing a post on X, Graham wrote, "Mr President: your decisive leadership in isolating this regime economically through your actions today are most impressive. Your promise to have the protestors’ back and put the regime on notice that you will not tolerate the killing has led to the largest outpouring of demonstrators against this fanatical regime since its founding.

"Mr President: I believe the Iranian regime has crossed red lines. They are killing their people in large numbers and mocking your leadership. It is now time to take decisive military action — no boots on the ground – going after those who do the killing, Graham added"

This comes as large demonstrations were reported across provinces, including Azerbaijan province and the central city of Arak, with crowds waving flags and chanting slogans in support of Iran, Press TV reported. The protests and counter-demonstrations follow days of unrest amid soaring inflation, economic hardship and public anger over governance.

At least 544 people have been killed, and more than 10,681 individuals have been arrested and transferred to prisons, according to the Human Rights News Agency.

Earlier on Sunday (local time), Trump said that Washington may be forced to take action against Iran amid ongoing nationwide protests, even as he revealed that Tehran has reached out to Washington seeking negotiations.

Speaking to reporters onboard Air Force One, Trump said Iranian leaders had contacted Washington to discuss diplomatic engagement.When asked whether Iran wanted to engage in diplomatic talks with him, Trump responded affirmatively.

(With ANI inputs)

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