As if the 25% tariff on Indian goods landing in the US plus a penalty was not enough, US President Donald Trump has now targeted 6 Indian companies in connection with their trades with Iran. This comes just a day after the US President announced 25% tax on Indian goods along with a penalty, despite calling the country a “friend”.
Announcing this, Trump blamed it on India’s military and oil purchases from Russia along with our participation in the BRICS grouping—which includes Brazil, Russia, India, China, and South Africa. Trump has labeled the bloc as “anti-United States” and accused it of trying to weaken the US dollar.
After Russia, BRICS, it is now India’s trade with Iran that seems to have irked Trump. The US has now sanctioned 6 India-based companies and 5 Indian nationals, in a move that is part of its latest Iran-related sanctions. The US is targeting these firms and individuals for they engaged in buying Iranian oil, petroleum products, and petrochemicals.
Trump’s targets: Which Indian companies, individuals have sanctions been imposed on?
A Chennai-based and the rest Mumbai-based firms were at fault for engaging in Iranian petroleum, petroleum products, or petrochemical trade. According to the US, the Iranian regime uses revenue to fuel conflict in the Middle East, fund terrorism, and oppress its people.
“Today, the United States is taking action to stem the flow of revenue that the regime uses to support terrorism abroad, as well as to oppress its own people,” the US Department of State spokesperson said.
US has imposed sanctions on 6 Indian companies which are part of the State Department as well as the OFAC sanctions lists. These include Chennai-based Kanchan Polymers and Mumbai-based Alchemical Solutions (also known as Chemform Trading), Ramniklal S Gosalia and Company, Jupiter Dye Chem, Global Industrial Chemicals, and Persistent Petrochem.
The 5 Indian nationals designated by the OFAC are Mohamed Rafeek Habibullah, Jacob Kurian, Anil Kumar Panackal Narayanan Nair, Pankaj Nagjibhai Patel, and Elyas Jafer Tambe.
What happens to them now?
As part of its latest action, the US Department of the State imposed sanctions on 20 entities. In addition to this, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated more than 50 individuals and entities and identified more than 50 vessels that are part of Hossein Shamkhani’s network.
Under the US sanctions, all property and interests in property of these companies in the US or under the control of US persons are blocked. Further, an entity or company 50% or more owned by a person or company that is already blocked is also considered blocked under the sanction.
” These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person,” the US Department’s statement added.
What is India’s response to the US on the latest sanctions?
While the Government of India has not addressed the issue directly, the embassy of Iran in India lambasted the US, accusing it of weaponising the economy and using sanctions as tools to dictate its will on other countries.
“These coercive discriminatory actions violate the principles of international law and national sovereignty, representing a modern form of economic imperialism. Resisting such policies is a stand for a more powerful emerging non Western-led multilateral world order and a stronger Global South,” it said.
US tariffs on India: Which sectors are most hit?
Recently government data showed that the US remained India’s largest trading partner for the fourth consecutive year in FY 2024-25. The India-US bilateral trade was valued at $131.84 billion. In 2024, US total goods trade with India were an estimated $129.2 billion, with exports standing at $41.8 billion, and imports at $87.4 billion.
According to the government’s Niryat portal, India’s top exports to the US are in engineering goods, petroleum products, electronics, pharma, gems & jewellery, among others. These could be some of the sectors that see the biggest impact on these US tariffs.
Notably, India is the largest exporter of non-patented drugs to the US and India’s smartphone exports to the country has witnessed a remarkable growth of almost 5 times in the past 3 years.