Iran's Top Exports Destinations

Growing geopolitical tensions between Iran and the U.S. is set to have a profound impact on Iran's trade ties as the U.S. administration threatens to impose punitive tariffs of 25% on countries trading with Iran. This move is seen as act of isolating Iran economically - furthering economic woes in a country already grappling with country-wide protests.

Trade-related pressures come against the backdrop of a slowing economy - marred by freely falling domestic currency and energy shortages in a country rich with natural resources. These factors together have contributed to public discontent along with pollution related concerns.

In the current geopolitical context, it is imperative to look at trade patterns to understand who engages economically with Iran and in which region are its export lifelines situated.

Based on World Trade Organization (WTO) data, this chart looks at Iran’s top export destinations in 2024, highlighting the concentration of exports among neighbouring economies and Asian markets amid growing external pressures.

Key takeaways from the WTO data are:

• China remains Iran’s largest export destination, reinforcing its role as a critical economic partner despite escalating geopolitical risks.
• Regional neighbours dominate Iran’s export profile, with Iraq, the UAE, and Türkiye accounting for a significant share of total exports.
• Asia absorbs the bulk of Iran’s exports, highlighting a sustained eastward tilt in trade as access to Western markets remains constrained due to Western sanctions.
• India will find itself in a tight spot as it is already reeling under the impact of additional 25% punitive tariffs imposed on it by the U.S. administration for trading with Russia.
• European trade links are limited, reflecting the impact of sanctions, compliance risks, and geopolitical alignment.
• With exports concentrated among a narrow set of partners, any escalation in punitive trade measures could further amplify Iran’s economic vulnerabilities.

Looking ahead, the impact of threatened punitive tariffs on countries trading with Iran will be closely watched - particularly for partners already facing elevated trade barriers.

Attention will also focus on whether cross-border trade with neighbouring economies remains resilient or begins to slow.

Note: Data reflects goods exports in 2024. All values in US$ billion.

Source: World Trade Organization (WTO).

Access Iran's WTO profile with the following link: https://ttd.wto.org/en/profiles/iran