Washington: At present, Trump has his sights set on Iran and he is repeatedly sending threats of attack. Meanwhile, America has started bullying Iran’s trade partners to further increase economic pressure. Trump has recently decided to impose 25 percent additional tariff on countries which are doing bilateral trade with Iran. India also comes in the list of these countries, hence the question is arising whether this tariff has been imposed on India also? Recently a government source told CNN-News18 that what effect is this decision of Trump going to have on India?

What will be the impact on India?

Last year, India-Iran’s total trade stood at around $1.6 billion, which is only 0.15% of India’s total global trade. Iran is no longer even among India’s top 50 trading partners. Therefore, the government believes that the 25% tariff will not have any significant impact on India’s larger economy.

What if there is an impact?

The government may be relaxed, but it is going to give sleepless nights for textile, basmati rice and tea exporters. India is already facing 50% tariff from the US on buying Russian oil, which includes 25% baseline and 25% Russian oil penalty. If Iran’s 25% is added to this, the total tariff on some Indian goods can reach 75%. Due to this, Indian goods will become so expensive in the American market that no one will be able to buy them. Within a few hours of this announcement, a huge fall in the prices of Basmati rice has been seen in the Indian markets.

Clouds of trouble over Chabahar Port?

The biggest concern for India is not trade but Chabahar port. India has recently signed a 10-year agreement for the operation of this port. This is India’s strategic way to reach Afghanistan and Central Asia. If America also puts this project in the category of ‘trade with Iran’, then India’s investment worth crores and strategic autonomy may be in danger.