Trump’s New Tariffs on Copper and Pharma: What Are The Implications for India
US President Donald Trump announced tariffs on Copper and Pharma
US President Donald Trump has unveiled a 50% tariff on copper imports and warned of a potential 200% tariff on pharmaceuticals within a year, effective August 1, 2025. These measures, announced during a cabinet meeting, aim to bolster domestic production but pose challenges for India, a key exporter to the US.
The copper tariff, set to take effect by late July or August 1, expands Trump’s protectionist policies, which already include duties on steel and aluminum. Commerce Secretary Howard Lutnick confirmed the timeline, noting that ongoing probes into pharmaceuticals and semiconductors will conclude this month, potentially leading to further levies. Trump also dismissed the BRICS bloc as a non-serious grouping but warned of a 10% tariff if it challenges the US dollar.
India, a major copper and pharma exporter, faces significant impacts. In 2024-25, India exported $2 billion in copper products globally, with $360 million (17%) going to the US, its third-largest market after Saudi Arabia and China. While domestic demand may absorb any US shortfall due to copper’s critical role in energy and infrastructure, the pharma sector is more vulnerable. The US accounts for 40% of India’s $9.8 billion pharma exports in FY25, up 21% from last year. A 200% tariff could disrupt India’s generics industry, which supplies affordable medicines to the US.
Also Read: US Extends Suspension of Reciprocal Tariffs to August 1, Offering Relief to Indian Exporters
India is negotiating a mini-trade deal with the US, which could mitigate these tariffs if finalized before August 1. However, failure to secure this agreement may hurt India’s export-driven pharma sector and ripple through its economy. Trump’s policies signal a broader push for US manufacturing, leaving global trade partners like India to navigate an increasingly protectionist landscape.
