India continues its dialogue with the United States regarding the conditional sanctions waiver associated with the Iran-related Chabahar project, as stated by the Ministry of External Affairs (MEA) in response to inquiries about recent events.
The MEA emphasized its close monitoring of the situation surrounding the 25% additional tariffs. It highlighted India’s enduring partnership with Iran, with bilateral trade reaching $1.6 billion. India’s exports to Iran total $1.2 billion, while imports account for $0.4 billion.
Also Read: US decision to revoke sanctions waiver for Chabahar port will have implications for India
The ministry mentioned that on October 28, 2025, the US Department of the Treasury provided a letter detailing guidance on a conditional sanctions waiver, which is effective until April 26, 2026.
The MEA affirmed that India remains engaged with the US in finalizing the arrangement.
Earlier on Monday (January 12), US President Donald Trump posted on his Truth Social platform that any nation conducting business with Iran will incur a 25% tariff.
The tariff will apply to “any and all business conducted with the United States of America and is effective immediately,” Trump announced on his social media account.
Iran is currently experiencing anti-government protests, which Trump has supported, stating over the weekend that the US is prepared to assist.
Chabahar Port story
New Delhi proposed developing Chabahar port as far back as 2003, to create a pathway for Indian goods to reach landlocked Afghanistan and Central Asia through the International North-South Transport Corridor, circumventing Pakistan.
US sanctions against Iran, related to its alleged nuclear program, have hindered the port’s development.
A long-term agreement was executed between Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran.
This agreement replaces an initial 2016 contract, which covered India’s operations at the Shahid Beheshti terminal in Chabahar port and had been renewed annually.
In 2023, Chabahar port was utilized by India to deliver 20,000 tonnes of wheat aid to Afghanistan, while in 2021 it was used to provide eco-friendly pesticides to Iran.
