With the US imposing steep copper tariffs and hinting at a 200% levy on pharmaceuticals, India’s $10 billion export sectors brace for impact unless a trade deal is struck before August 1.
July-9, 2025: Washington/New Delhi –
In a bold escalation of his protectionist trade agenda, US President Donald Trump on Tuesday announced a 50% tariff on copper imports and issued a stern warning of a 200% tariff on pharmaceutical products imported into the United States. These proposed measures are likely to have serious implications for India, which counts the US as a top trading partner in both copper and pharmaceuticals.
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⚙️ Trump’s New Tariff Blitz
Speaking during a cabinet meeting, Trump declared:
“Today we’re doing copper. I believe the tariff on copper, we’re going to make it 50%.”
This move builds on previous duties placed on steel and aluminium and immediately triggered a surge in global copper prices. Trump confirmed the new tariffs will be effective by July-end or August 1.
Commerce Secretary Howard Lutnick later reinforced that tariffs would be rolled out aggressively and confirmed that studies into pharmaceuticals and semiconductors would be completed by month-end, potentially triggering more trade barriers.
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💊 Pharma Warning: 200% Tariff on the Horizon
Trump also issued a massive tariff warning on pharmaceuticals, saying:
“We’ll give manufacturers a year, maybe a year and a half to relocate production to the US. After that, we’re imposing a very high tariff—like 200%.”
This is particularly worrisome for India’s booming generic drug exports, which form the backbone of affordable healthcare in the US.
🌍 The BRICS Factor
Trump didn’t hold back on geopolitics either. He reiterated a 10% blanket tariff threat on all BRICS member nations (Brazil, Russia, India, China, South Africa), calling the bloc “not a serious grouping” but one that’s challenging the US dollar’s dominance.
“It’s alright if you want to challenge the dollar. But you will have to pay the tariffs. I don’t think they want that,” Trump warned.
🇮🇳 What This Means for India
🪙 Copper Exports at Risk
India exported $2 billion worth of copper and copper products globally in FY2024–25, with $360 million (17%) going to the US, its third-largest copper market. The new tariffs may squeeze this sector’s margins, though domestic demand could absorb the excess supply.
💊 Pharma Could Take a Major Hit
The bigger concern lies with India’s $9.8 billion pharma exports to the US, which account for 40% of India’s total drug exports. A 200% duty could cripple demand, undercutting the pricing advantage of Indian generics in the world’s largest pharmaceutical market.
🔄 Trade Deal May Be India’s Best Hope
India and the US are currently negotiating a mini trade agreement, and government officials say the August 1 deadline is critical. If the deal is inked in time, the proposed tariffs may not be enforced on Indian exports.
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Donald Trump, US Tariffs, Copper Tariff, Pharmaceutical Exports, India-US Trade, BRICS Tariff, Trump Trade War, Indian Economy, Copper Exports, Pharma Industry, US-India Relations, Howard Lutnick, Generic Drugs, Mini Trade Deal
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