US Imposes Sanctions on Six Indian Companies for Trading with Iran, Trump Announces New Tariffs

The United States government, under President Donald Trump, has imposed sanctions on six Indian companies accused of engaging in trade with Iran’s petroleum and petrochemical products. This action is part of a broader move targeting 20 global entities for violating U.S. sanctions on Iran.

In a statement issued on Wednesday, the U.S. State Department revealed that the sanctioned Indian companies were involved in “significant transactions” related to the purchase and sale of Iranian petroleum products, thereby breaching U.S. sanctions. The companies include major Indian petrochemical firms such as Alkemical Solutions, Global Industrial Chemicals, Jupiter Dye Chem, Ramniklal S Gosalia & Company, Persistent Petrochem, and Kanchan Polymers.

Among these, Alkemical Solutions Private Limited faces the most significant allegations, accused of importing over $84 million worth of Iranian petrochemical products between January and December 2024. Global Industrial Chemicals Limited is alleged to have purchased more than $51 million worth of Iranian petrochemicals, primarily methanol, between July 2024 and January 2025. Jupiter Dye Chem Private Limited is accused of importing over $49 million worth of Iranian products, including toluene, during the same period. Ramniklal S Gosalia & Company is alleged to have purchased over $22 million worth of Iranian petrochemicals, including methanol and toluene. Persistent Petrochem Private Limited reportedly imported approximately $14 million worth of Iranian petrochemicals, mainly methanol, between October and December 2024. Kanchan Polymers is accused of purchasing over $1.3 million worth of Iranian polyethylene products. The sanctions will result in the seizure of any assets these companies hold in the U.S. or under the control of U.S. persons or entities. Additionally, U.S. citizens and companies are prohibited from engaging in commercial activities with these firms. Any affiliate companies with at least 50% ownership by the sanctioned entities will also face similar restrictions. This move is part of the U.S.’s “maximum pressure” policy aimed at curbing Iran’s so-called “shadow fleet” and intermediaries facilitating the global trade of Iranian oil and petrochemicals. U.S. officials claim that the revenue generated from these exports is used by Iran to fund destabilizing activities in the Middle East and support various terrorist groups. Despite historically close trade ties with Iran, India significantly reduced its imports of Iranian oil following earlier U.S. sanctions in 2019. The sanctioned companies can apply to have their names removed from the U.S. Treasury’s Specially Designated Nationals (SDN) list. The Trump administration emphasized that the goal of these sanctions is not punishment but to encourage positive behavioral changes. In addition to the sanctions, President Trump announced a 25% retaliatory tariff on goods imported from India, effective from August 1, 2025. Trump also stated that India would face “penalties” for purchasing weapons and energy from Russia, though he did not provide specific details on the nature of these penalties. The sanctions also extend to companies in Turkey, the United Arab Emirates, China, and Indonesia, which the U.S. accuses of supporting Iran’s oil and petrochemical trade network.