Trump's Iran Tariff: India's $1.2 Billion Exports at Risk, But Rice Shipments Safe
Business
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Moneycontrol•13-01-2026, 18:24
Trump's Iran Tariff: India's $1.2 Billion Exports at Risk, But Rice Shipments Safe
- •US President Donald Trump announced a 25% tariff on countries trading with Iran, impacting India's $1.24 billion exports.
- •Rice, India's top export to Iran ($757.3 million), is largely safe due to its classification as humanitarian goods.
- •Indian companies and banks already comply with OFAC sanctions, limiting engagement to humanitarian trade (food, pharma).
- •Uncertainty remains regarding the definition of "doing business" with Iran and the additive nature of new tariffs.
- •If tariffs are additive, sectors like textiles, gems, leather, auto components, chemicals, and marine exports could be affected.
Why It Matters: India's $1.2 billion exports to Iran face new US tariffs, but rice shipments are protected as humanitarian goods.
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