America’s Sanctions Game: Why Trump Targets India for Its Iran Ties – and What’s at Stake Now

First Russia, then China, then Brazil, and now India. Donald Trump consistently tries to play his own tune with each major global power—threatening some with sanctions to stop wars, others with tariffs to force trade in America’s favor. Now, Trump’s attention is fixed on the partnership between India and Iran, with Pakistan becoming his new ally—a Pakistan which once claimed solidarity with Iran and highlighted humanitarian crises in Gaza.

Once again, the U.S. State Department is tightening its grip on the global stage, but this time the target is Indian companies, accused of trading with Iran. Out of 20 global businesses, six are from India—each accused by the U.S. of trading in petrochemical products like methanol and polyethylene, purchased from Iran. Why the uproar? The American administration claims Iran uses funds from these businesses to sponsor terrorism and unrest in the Middle East, and oppress its own citizens.

But the reality isn’t that black and white. The story isn’t just about trade—it’s about political, diplomatic, and strategic failures. India and Iran have a long history, whether it’s cooperation in building the Chabahar Port or standing together at international forums. Their repeated partnership has long irked Washington, and this is where Trump’s antagonism begins.

Consider when America unleashed its “maximum pressure” campaign on Iran—breaking nuclear deals, imposing waves of sanctions. Did it work? Iran didn’t back down, nor was its influence much dented. In fact, it drew closer to Russia and China. India, meanwhile, never completely severed ties with Iran. Behind the scenes, cooperation persisted. In the end, Trump’s administration didn’t achieve the strategic isolation it hoped for.

Now, as President Trump gears up for another term (2024), he seems intent on reviving old strategies—this time, directly targeting commercial enterprises, with Indian companies among those hit hardest. The U.S. says these Indian businesses imported Iranian-origin products, but the broader question is: Can the U.S. dictate terms to an economy and global player as large as India?

India’s economy weighs its own energy needs and strategic partnerships, rather than seeing the world in America’s black-and-white terms of good and evil. The Iranian Embassy in India swiftly responded to the sanctions, condemning the U.S. for weaponizing its economy and imposing its will on independent countries like India and Iran—calling these acts discriminatory, illegal, and new forms of economic imperialism.

Such policies, many argue, have only strengthened the push toward a non-Western, multipolar world order and a stronger Global South. America’s latest move is not just a sanction—it’s a sign of unease as its moves backfire, especially when countries like India chart their own independent course.

Is this really about fighting terrorism, or is it Trump’s frustration at failing to get his way with India and Iran? History shows when a powerful country can’t force another to bend, it often seeks to teach a lesson to those who refuse to fall in line. This time, the “lesson” lands on six Indian companies.

Meanwhile, Trump throws more shocks India’s way. After imposing a 25% tariff, he celebrates a major deal with India’s longtime rival, Pakistan—promising American help to develop Pakistan’s oil reserves and even suggesting Pakistan could one day sell oil to India. All this while penalizing India for buying oil from Russia.

Trump explains these moves as a response to India’s role in BRICS—a bloc he labels anti-American, due to moves against the US dollar and reduced trade with Washington. “We’re losing out,” he says, pointing at India as a friend who doesn’t trade enough with the US.

At home, the Modi government now faces criticism, as the opposition seizes on Trump’s statements and tariffs to build political pressure—raising questions about India’s trade strategy and foreign policy.

Delhi is left at a crossroads: bow to US pressure, risking strategic autonomy, or push back and risk greater penalties at a turbulent time in global relations.

Conclusion: The latest Trump-era sanctions and tariff games aren’t just about trade. They’re about power, prestige, and the fierce jostling for influence in a shifting world order—where India, with its priorities and partnerships, refuses to play by America’s rules. What comes next may reshape the geopolitics of the entire region.