Armenia must defend Iran trade to U.S. as non-threat, economist says

Armenia should continue trade and economic ties with Iran and clearly explain to Washington that the relationship does not threaten regional security, economist Suren Parsyan said, responding to new U.S. measures imposing additional tariffs linked to Iran.

In an interview to Panorama.am on Monday, Parsyan said Armenia cannot abandon trade with Iran because it would lose its second alternative transit route, noting that ties with Tehran carry strategic and political weight as Armenia’s eastern and western borders remain closed.

Parsyan said a new 25% U.S. tariff should not prompt Yerevan to reconsider relations with Iran. Armenia exports about $50-60 million worth of goods annually to the United States, compared with roughly $100 million to Iran, he said, arguing the measure would not cause significant economic damage.

He expects the impact to fall mainly on Armenian diamonds, gold jewelry and processed food exported to the U.S., which would become more expensive for diaspora consumers.

On the political front, Parsyan urged flexibility, saying the decision applies broadly to many countries and that implementation for Armenia could potentially be delayed. He said Yerevan should make clear to U.S. counterparts that close ties with Iran do not contradict regional peace initiatives.

“Armenia must do everything to maintain close ties with Iran, demonstrating there are no risks and it is not detrimental to U.S. interests,” Parsyan said, adding that maintaining good relations with a neighbor is essential alongside regional connectivity projects.

Parsyan said Iran-linked transit routes are vital for Armenia and that no international decision should prevent the country from exercising its geographic alternatives.

The comments follow a new executive order by U.S. President Donald Trump imposing a 25% additional tariff on goods from countries that "directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran". The order states that Washington continues to view Iranian government policies as an extraordinary threat to U.S. national security and the economy.