U.S. tariff threat puts India-Iran ties, BRICS plans under strain
New Delhi faces mounting pressure in its longstanding ties with Iran following U.S. President Donald Trump’s announcement of a 25% tariff on any nation engaging in trade with Tehran while seeking to conduct business with the United States. The threat, declared on January 13, 2026, arrives at a delicate juncture for bilateral and multilateral engagements involving both countries.
Government sources informed The Hindu that India plans to curtail its trade with Iran further during the ongoing financial year, attributing the move to external economic pressures. This adjustment comes despite preparations to mark the 75th anniversary of India-Iran diplomatic relations, which had included plans to host Iranian President Masoud Pezeshkian at the upcoming BRICS summit in India.
The tariff announcement casts uncertainty over the anticipated visit of Iranian Foreign Minister Syed Abbas Araghchi to New Delhi later in January 2026. This would mark his second trip in under a year, following his May 2025 visit amid India’s Operation Sindoor targeting terror elements in Pakistani territory. Discussions during the proposed visit were expected to cover bilateral cooperation, including Iran’s longstanding support for India on issues such as Kashmir at United Nations forums. No official confirmation from Indian authorities has been issued yet.
External Affairs Minister S. Jaishankar, speaking at the launch of the BRICS summit logo on January 14, 2026, outlined India’s vision for its 2026 chairmanship. He emphasized that BRICS demonstrates resilience in absorbing global shocks. The event drew BRICS envoys, including Russia’s Denis Alipov and Iran’s Mohammad Fathali. Jaishankar also held a phone conversation with U.S. Secretary of State Marco Rubio, addressing topics like trade, critical minerals, nuclear cooperation, defense, and energy.
Iran became a full BRICS member on January 1, 2024, alongside Egypt, Ethiopia, and the United Arab Emirates, following the 2023 expansion decided at the South Africa summit. As a BRICS participant, Iran’s president faces no apparent legal barriers to attending the India-hosted gathering, though heightened U.S.-Iran tensions have plunged Tehran into crisis, with public protests—backed by Trump—posing risks to the regime, alongside internet blackouts.
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India continues efforts to expand operations at Iran’s Chabahar port, a vital link for connectivity to Central Asia, Russia, and partnerships with Afghanistan’s Taliban-led administration, bypassing Pakistan.
India’s approach toward Iran remains under close international scrutiny, given its founding role in BRICS and the bloc’s growing membership. The tariff threat underscores challenges in balancing strategic partnerships amid escalating geopolitical frictions.