The US levied sanctions against several Indian businesses, accused of engaging in petroleum and petrochemical trade with Iran, as part of a larger enforcement targeting 20 global entities.The US State Department, on Wednesday, unveiled the sanctions against 6 India-based companies, claiming these firms deliberately participated in “significant transactions” involving the acquisition and sale of Iranian petroleum products, breaching American restrictions on Iran.Among the sanctioned Indian enterprises are prominent petrochemical traders. The heaviest accusations fell on Alchemical Solutions Private Limited, which allegedly imported Iranian petrochemical goods valued above $84 million during January-December 2024.Global Industrial Chemicals Limited reportedly acquired Iranian petrochemicals, including methanol, worth over $51 million from July 2024 to January 2025. Jupiter Dye Chem Private Limited’s imports of Iranian products, including toluene, totalled more than $49 million in this period. Ramniklal S Gosalia and Company allegedly procured Iranian petrochemicals valued above $22 million, comprising methanol and toluene, as stated by the US Justice Department in a press release.US Records further claim Persistent Petrochem Private Limited imported Iranian petrochemicals, mainly methanol, worth approximately $14 million between October and December 2024 while Kanchan Polymers allegedly obtained Iranian polyethene products valued at over $1.3 million.The sanctions freeze all US-based assets of these firms or those controlled by US persons. American entities are barred from business dealings with the sanctioned organisations. The restrictions extend to any entity with 50 per cent or greater ownership by the sanctioned companies.These measures align with the US’s ongoing “maximum pressure” strategy against Iran, focusing on the country’s covert vessel network and intermediaries facilitating global Iranian oil and petrochemical distribution. American officials allege that Iran utilises revenue from these exports to support what they term “destabilising activities” in the Middle East and terrorist organisations.India’s historical trade relations with Iran have persisted, although Iranian oil imports have decreased substantially since 2019 following earlier US sanctions.Sanctioned companies may appeal for removal from the US Treasury’s Specially Designated Nationals list, according to ANI. The US administration stated that sanctions aim to “bring about a positive change in behaviour”.Also read: What do Donald Trump’s 25% tariffs on India mean? What happens if they stayOrganisations seeking to challenge their designation may submit appeals to the Treasury Department’s Office of Foreign Assets Control, according to official documentation from the US State Department.In addition to the sanctions against the above Indian-based companies, one other firm with Indian connection was also sanctioned. Tanais Way General Trading LLC is among the sanctioned which is said to have exported shipments of Iranian-origin polyethylene to India-based Kanchan Polymers.The enforcement action also encompasses firms in Turkey, the UAE, China, and Indonesia, which US officials identify as part of a worldwide network enabling Iranian oil and petrochemical commerce.Read more: US, Pakistan strike ‘massive reserves’ deal; Donald Trump hints at future exportsThis comes soon after Trump announced imposition of 25% tariffs on India and extra penalties for their trade with Russia, effective August 1.
Trump’s tariffs on India
Trump has announced a 25 per cent tariff on Indian imports, effective August 1, as part of his “Liberation Day” trade strategy. The move follows stalled negotiations between India and the US on a bilateral trade deal. Despite several rounds of talks, no interim agreement has been finalised. Trump accused India of maintaining high tariffs and restrictive non-monetary trade barriers, calling them “among the most strenuous and obnoxious in the world.” He also pointed to India’s continued purchases of Russian arms and energy, declaring that an additional penalty would be imposed for these ties. Details of the penalty remain unclear. The new tariffs will impact Indian exports to the US, projected to reach approximately $87 billion in 2024. Affected sectors include labour-intensive industries such as apparel, pharmaceuticals, gems and jewellery, and petrochemicals. India currently has a trade surplus of $45.7 billion with the US. In a post on Truth Social, Trump said, “While India is our friend… they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy… INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY…” In response, the Ministry of Commerce and Industry said the government has taken note of the statement by the US President and is studying its implications. It reiterated India’s commitment to a fair, balanced, and mutually beneficial trade agreement, and stressed that the government will take all necessary steps to safeguard national interest, including protecting the welfare of farmers, MSMEs, and entrepreneurs.Also read: Donald Trump announces 25% tariffs- Where does that leave India-US trade deal talks? What to expect