In Iran, anti-government demonstrations enter their third week. Witnesses who managed to make international phone calls after weeks of communication blackouts described scenes of devastation, with several banks and government offices burnt during the unrest. The internet shutdown, now in its fourth day, has severely disrupted banking operations, leaving financial institutions struggling to complete basic transactions while mobile phone services remain largely paralysed.

 

President Donald Trump announced on Truth Social that any country conducting business with Tehran would face a 25 per cent tariff on all transactions with the United States. The declaration, which appears to target China as a major trading partner of both Iran and America, would make Chinese goods significantly more expensive to import and would affect India too.

 

Trump has repeatedly warned that Washington may intervene if Iranian authorities open fire on demonstrators, escalating diplomatic tensions between the two nations. Despite the threats, Iran’s foreign ministry stated the country remains ready for dialogue with the US while being “prepared for war”. Sources confirm that Iran’s foreign minister has maintained communications with Trump’s special envoy Steve Witkoff in recent days, suggesting diplomatic channels remain open even as the crisis deepens.

 

Iran, a member of OPEC, exported goods to 147 trading partners, according to the World Bank, with China emerging as its largest trading partner, accounting for about 22 billion dollars in trade, largely driven by fuel exports. With food accounting for roughly one-third of Iran’s imports, tighter trade restrictions could deepen shortages and further raise living costs. 

 

India’s total bilateral trade with Iran stood at about 1.34 billion dollars during the first ten months of 2025, with key Indian exports including basmati rice, fruits, vegetables and pharmaceuticals, placing India among the countries that could be affected by the proposed US measures.