The news centers on a recent statement by former US President Donald Trump, who announced on Truth Social on Monday, January 12, 2026, that any country conducting business with Iran would face a 25% tariff on all trade with the United States, effective immediately. This statement has prompted responses from Indian government sources, who assert that these potential "additional 25% tariffs" are expected to have a "minimal impact" on India's overall trade landscape. Indian government sources highlighted that Iran does not feature among India's top 50 trading partners. India's total trade with Iran in the last financial year (2024-25) was approximately $1.6 billion, constituting a mere 0.15% of India's total global trade. This figure is projected to decline further. Crucially, a significant portion of India's exports to Iran, particularly basmati rice (over 61% of exports) and pharmaceuticals, falls under humanitarian trade categories, which are typically exempt from US sanctions. While some sectors, such as rice, tea, and fresh fruits, might experience temporary disruptions, the overall economic impact on India is deemed limited. Exporters, through bodies like the Federation of Indian Export Organisations (FIEO), have affirmed their compliance with US Office of Foreign Assets Control (OFAC) norms, operating only in permitted humanitarian trade areas. However, industry representatives also note challenges like the depreciation of the Iranian currency, which affects purchasing power and contract stability. India's trade with Iran has already seen a significant decline since 2019 due to existing US sanctions. Moreover, India is already subject to other US tariffs, including a 50% levy on certain Indian goods, partially attributed to India's crude oil imports from Russia. This latest development underscores the ongoing geopolitical pressures on international trade, with India navigating its economic interests while adhering to international frameworks. The potential tariffs by Trump are viewed more as a "headline risk" rather than an immediate threat to Indian exporters' earnings.