New Delhi: In a dramatic escalation of protectionist trade policies, US President Donald Trump has announced sweeping new tariffs—50% on copper imports and a potential 200% on pharmaceutical products—moves that could send shockwaves through global markets and strike directly at India’s export engine. The announcement is particularly significant for New Delhi, as the United States remains India’s largest pharmaceutical market and a key destination for copper exports.
“Today we’re doing copper. I believe the tariff on copper—we’re going to make it 50%,” Trump declared during a cabinet meeting, sending global copper prices soaring. Commerce Secretary Howard Lutnick later confirmed the new copper duties are expected to be implemented by July end or August 1. But the real jolt came with Trump’s warning on pharma: a 200% tariff will soon be imposed on drug imports, with a one-year window for companies to shift production back to American soil.
For India, this policy shift could be devastating. In FY 2024–25, India exported nearly $2 billion worth of copper globally—$360 million of which went to the US, making America its third-largest copper market. But it’s the pharmaceutical sector where the hit could be brutal. The US accounted for a whopping $9.8 billion in Indian pharma exports last year, or 40% of the total, driven largely by affordable generics that supply a huge portion of US prescriptions.
The pharmaceutical industry, already dealing with complex compliance issues and regulatory scrutiny, now faces the threat of a massive demand slump if the 200% tariffs are implemented. Experts warn that the move could not only disrupt supply chains but also affect drug affordability in the US.
This policy is part of Trump’s wider trade war strategy, targeting key sectors like semiconductors, minerals, and now copper and pharmaceuticals. He also reiterated his plans to impose a 10% tariff on BRICS nations, calling them “not a serious grouping” while acknowledging their challenge to the US dollar.
Back in India, there’s cautious optimism that an ongoing mini-trade deal with the US could act as a buffer. Sources indicate the deal may include sectoral tariff protections—if finalized before the August 1 deadline, it could help shield India’s key exports from the brunt of Trump’s aggressive tariff regime.
Still, industry insiders warn that the clock is ticking. Should the deal fall through, Indian exporters may be forced to find alternate markets or absorb heavy losses—just as the country tries to rebound from global economic volatility.
In essence, Trump’s latest salvo marks not just a shift in trade dynamics, but a potential turning point in India-US economic relations—one that could redefine how both nations approach manufacturing, self-reliance, and globalization in the years ahead.
