On Tuesday, the US President Donald Trump announced that Washington would impose sweeping tariffs on any country that continues to do business with Iran.
Notably, the announcement comes amid a surge of demonstrations in Iran. The unrest has quickly become one of the most serious challenges to the regime since the 1979 Islamic Revolution, with more than 600 people reportedly killed in the crackdown so far.
Trump posted on Truth Social, writing, “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.”
ALSO READ| Trump announces 25% tariff on countries doing business with Iran. What does this mean for India?
Iran’s economic lifelines run through a small group of trading partners: Who are they?
Following the ruckus, China, Turkey, the United Arab Emirates, Iraq and India are now staring at the prospect of punitive US trade measures.
China
China is by far Iran’s most critical partner. Just in 2025, Beijing purchased more than 80 per cent of Iran’s shipped oil, according to data from Kpler. With US sanctions already shrinking Tehran’s customer base, Chinese purchases have helped keep Iran’s oil revenues afloat. Reacting to Trump’s threat, China said it opposed “any illicit unilateral sanctions and long-arm jurisdiction.”
India
PM Narendra Modi’s country has maintained steady trade ties with Iran, remaining among its top five partners in recent years. Indian exports include basmati rice, fruits, vegetables, medicines and pharmaceutical products. Beyond trade, New Delhi and Tehran share strategic interests, notably the Chabahar port project initiated in 2015.
The new tariff, however, could sharply raise the cost of India’s access to the US market. The 25 per cent levy would be stacked on top of the existing US reciprocal tariff of 25 per cent, along with an additional 25 per cent imposed on India for importing Russian crude oil, taking the total levy to 75 per cent.
Notably, India’s bilateral trade with Iran stood at $1.34 billion in the first ten months of 2025.
ALSO READ| US lawmakers head to Copenhagen as Trump renews talk of acquiring Greenland
Turkey
Iran’s exports to Turkey touched $5.8 billion in 2022, while imports stood at $6.1 billion, according to World Bank data.
Germany
Trade volumes are smaller, but Iran exported $178 million worth of goods to Germany in 2022, while importing $1.9 billion in return.
South Korea
Between January and November 2025, South Korea’s exports stood at $129 million, while imports were just $1.6 million, according to the Korea International Trade Association.
