'Modern form of economic imperialism': Iran blasts US sanctions on Indian firms over Iranian oil

The Iranian Embassy in New Delhi on Thursday hit out at Washington over its 25% tariff on India and sanctions on six Indian companies for their sales and purchases of petrochemical products from Iran.

"The United States continues to weaponize the economy and use #sanctions as tools to dictate its will on independent nations such as Iran and India and impede their growth and development. These coercive discriminatory actions violate the principles of international law and national sovereignty, representing a modern form of economic imperialism," the embassy said in a statement on X. 

The embassy added that challenging such unilateral policies was vital to shaping a new global framework: "Resisting such policies is a stand for a more powerful emerging non Western-led multilateral world order and a stronger Global South."

Iran's remarks came a day after US President Donald Trump announced sweeping measures against India — including a 25% tariff on all Indian imports beginning August 1 and an additional penalty for India’s continued oil and military trade with Russia. Addressing reporters on Thursday, Trump said, "I don’t care what India does with Russia. They can take their dead economies down together, for all I care."

He added: “We have done very little business with India, their tariffs are too high, among the highest in the world.”

The timing of Trump's announcement was particularly striking. It came just a day after Indian officials had stated that a US trade delegation was expected in New Delhi later in August to discuss a broader agreement. The White House, however, appears to be employing a pressure tactic, mirroring recent trade negotiations where Washington secured concessions from Japan, the UK, and the EU.

Trump reiterated that India's trade practices were unacceptable to the United States. "India has the most strenuous and obnoxious non-monetary trade barriers of any country. All things not good! India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first,” he wrote on social media.

India has significantly ramped up its Russian crude oil imports in recent years. Before the Ukraine conflict, Russian oil accounted for less than 0.2% of India’s energy basket. That figure now stands between 35% and 40%, making India the second-largest buyer of Russian oil after China.

In parallel, the Trump administration has also taken direct aim at Indian companies doing business with Iran. On Wednesday, six Indian firms were among 20 global entities sanctioned by the US State Department for “significant” purchases of Iranian petrochemical products.

The US government stated: "The Iranian regime continues to fuel conflict in the Middle East to fund its destabilizing activities. Today, the United States is taking action to stem the flow of revenue that the regime uses to support terrorism abroad, as well as to oppress its own people."

The Indian companies named include Kanchan Polymers, Alchemical Solutions, Ramniklal S Gosalia & Co, Jupiter Dye Chem Pvt Ltd, Global Industrial Chemicals Ltd, and Persistent Petrochem Pvt Ltd. The sanctions cover transactions worth millions of dollars in Iranian-origin petrochemicals including polyethylene, methanol, and toluene.

The US Treasury described this action as the "largest Iran-related action since 2018" and added that more than 50 individuals and entities, along with over 50 vessels linked to Iran’s petroleum trade network, were now designated under the sanctions framework.

Indian nationals also feature in the network. UAE-based Pankaj Nagjibhai Patel was sanctioned for his executive role in Teodor Shipping, a company accused of managing vessels linked to Iranian petroleum shipments. Two other Indians, Jacob Kurian and Anil Kumar Panackal Narayanan Nair, were also named in connection with a Marshall Islands-based shipping firm tied to the Iranian network.

As a result of these actions, all assets belonging to the sanctioned individuals and entities within US jurisdiction are frozen and must be reported to the Department of Treasury. Despite growing pressure, Tehran has made it clear it views the current US approach as unsustainable. "These are not just sanctions; they are instruments of dominance against nations that pursue independent paths," a senior Iranian diplomat said off-record.