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Chabahar Port: India in Talks With US as Sanctions Waiver Nears April 26 Expiry

The statement followed reports that India’s involvement in developing the strategic port had effectively stalled after US President Donald Trump said on January 12 that any country doing business with Iran would face a 25% tariff on all trade with Washington

Summary
  • India seeks US extension of Chabahar Port sanctions waiver expiring April 2026.

  • Trump’s 25% tariff threat on countries trading with Iran heightens uncertainty.

  • Waiver currently allows India to maintain operations and access Afghanistan/Central Asia.

  • US sanctions forced India to present phased-down plans to secure temporary relief.

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India is in talks with the United States to extend the time-bound sanctions waiver that allows it to continue work at Iran’s Chabahar Port, the Ministry of External Affairs informed on Friday. The current exemption set to expire on April 26 this year.

"On 28 October 2025, the US Department of the Treasury issued a letter outlining the guidance on the conditional sanctions waiver, which is valid till 26th April, 2026. We remain engaged with the US side in working out this arrangement," said MEA spokesperson Randhir Jaiswal.

The statement followed reports that India’s involvement in developing the strategic port had effectively stalled after US President Donald Trump said on January 12 that any country doing business with Iran would face a 25% tariff on all trade with the United States. The renewed tariff threat comes amid continuing violent protests in Iran.

"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive," Trump wrote on Truth Social.

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The six-month waiver secured by India last November remains in force, allowing uninterrupted operations at the port and supporting trade with Afghanistan and Central Asia. Situated in Iran’s Sistan–Baluchistan province along the southeastern coast, Chabahar Port offers India a strategic sea–land corridor into Afghanistan and Central Asia through Iran’s eastern borders, strengthening regional maritime transit links.

The US reimposed sanctions on Iran’s Chabahar Port on 29 September 2025. However, after India submitted plans outlining how it intended to gradually scale down its activities at the port — including operations at the Shahid Beheshti terminal — Washington granted a temporary exemption.

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