(Harsh V. Pant, Vivek Mishra – Observer Research Foundation) Ever since the second Trump administration assumed office, India has faced renewed tension in balancing its geopolitical and geoeconomic priorities. The latest manifestation of this pressure is President Donald Trump’s announcement of a 25 percent tariff on any country engaging in trade with Iran. While framed as a universal measure, the move complicates India’s carefully calibrated engagement with Tehran particularly its involvement in Iran’s Chabahar Port. Coming on the back of the existing trade tariffs, this adds another potential curveball in India’s efforts to navigate the Trump administration. The tariffs come close on the heels of a six-month waiver that India had secured from Washington in October 2025 for its operations at Chabahar. That waiver was widely interpreted as a temporary window to recalibrate and reassess India’s presence at the port. The new tariff threat, however, problematises that exemption and injects fresh uncertainty into an already fragile regional environment. More broadly, it risks pushing Iran and the Middle East closer to another cycle of escalation.
Chabahar: A Difficult Port Of Call For India
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