NewsGlobalIndia Maintains Engagement with US on Chabahar Port Sanctions Waiver Amid New Tariff ThreatsIndia Maintains Engagement with US on Chabahar Port Sanctions Waiver Amid New Tariff Threats
India maintains active diplomatic engagement with the US on the Chabahar port sanctions waiver amid Trump's 25% tariff threat on Iran business. The current conditional waiver remains valid until April 26, 2026, covering India's $1.60 billion bilateral trade relationship with Iran. The strategically important port serves as a gateway to Afghanistan and Central Asia, having facilitated wheat aid delivery and other humanitarian supplies in recent years.
*this image is generated using AI for illustrative purposes only.
India continues its diplomatic engagement with the United States regarding the conditional sanctions waiver for the Iran-related Chabahar port project, the Ministry of External Affairs confirmed while addressing recent developments. The discussions have gained renewed urgency following Trump's announcement of additional tariffs on countries maintaining business relationships with Iran.
Current Sanctions Framework
The diplomatic engagement centers around a conditional sanctions waiver issued by the US Department of the Treasury on October 28, 2025. This waiver provides operational guidance for the Chabahar project and remains valid until April 26, 2026. The MEA emphasized that India continues working with the US side to establish appropriate arrangements under this framework.
Bilateral Trade Relations
India maintains substantial economic ties with Iran despite ongoing international sanctions. The bilateral trade relationship demonstrates significant commercial engagement between the two nations.
| Trade Component: | Value |
|---|---|
| Total Bilateral Trade: | $1.60 billion |
| Indian Exports to Iran: | $1.20 billion |
| Indian Imports from Iran: | $0.40 billion |
The MEA highlighted this long-standing partnership while responding to questions about the potential impact of new tariff measures on India-Iran economic cooperation.
Trump's Tariff Announcement
On January 12, Trump announced via Truth Social that any country conducting business with Iran would face a 25% tariff. The tariff applies to "any and all business being done with the United States of America and is effective immediately," according to his social media statement. This announcement has prompted the MEA to closely monitor developments related to these additional tariffs and their potential implications for ongoing projects.
Strategic Importance of Chabahar Port
The Chabahar port project represents a crucial component of India's regional connectivity strategy. New Delhi initially proposed developing the port in 2003 to create a gateway for Indian goods reaching landlocked Afghanistan and Central Asia through the International North-South Transport Corridor, effectively bypassing Pakistan.
The project has demonstrated practical utility in recent years:
- 2023: Facilitated delivery of 20,000 tonnes of wheat aid to Afghanistan
- 2021: Enabled supply of environmentally friendly pesticides to Iran
Indian Ports Global Limited signed a long-term agreement with Iran's Port & Maritime Organisation, replacing the initial 2016 pact that covered operations at the Shahid Beheshti terminal. The original agreement had been renewed annually since its inception.
Ongoing Diplomatic Efforts
The MEA's statement underscores India's commitment to maintaining its strategic interests while navigating complex international sanctions regimes. The conditional waiver mechanism provides a framework for continued engagement, though the recent tariff announcements add new dimensions to the diplomatic calculations. India's approach reflects its broader strategy of balancing relationships with multiple international partners while pursuing independent foreign policy objectives in the region.
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