Trump's new tariff push puts pressure on Indian copper and pharma exports
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US President Donald Trump has announced a new 50% tariff on copper imports and issued a stern warning about imposing a potential 200% duty on pharmaceutical products in the coming year.
These moves could have significant consequences for India’s trade with the US.
The United States is India's largest export destination for pharmaceuticals and ranks among the top buyers of Indian copper products, making the announcement particularly relevant for New Delhi.
“Today we're doing copper. I believe the tariff on copper, we're going to make it 50 per cent,” Trump said during a cabinet meeting on Tuesday.
The new tariff extends the administration’s series of sector-specific trade actions, which previously targeted imports like steel and aluminium. The announcement pushed copper prices higher in the global market.
Commerce Secretary Howard Lutnick later told CNBC that the copper tariff would likely come into effect by late July or August 1.
Trump also signalled more aggressive tariffs on imported medicines, warning of duties reaching up to 200%. Manufacturers would be given a grace period to move operations back to the US. “We're going to give people about a year, a year and a half to come in, and after that, they're going to be tariffed. They're going to be tariffed at a very, very high rate, like 200 per cent,” Trump said.
The president added that ongoing investigations into pharmaceutical and semiconductor imports will wrap up by the end of the month, with policy decisions to follow soon after.
Trump further reiterated his threat to impose a 10% tariff on BRICS nations, calling the grouping “not a serious grouping,” but admitted that they are posing a challenge to the dominance of the US dollar.
In 2024–25, India exported copper and copper-based products worth $2 billion globally. Of that, shipments to the US accounted for $360 million, or about 17%. Saudi Arabia and China are India’s top two markets for copper exports. Despite the likely hit from the new tariff, copper being a core industrial material could see demand diverted to domestic consumption.
The pharmaceutical sector, however, faces a more serious risk.
The US is India’s biggest buyer of pharma goods, with exports rising to $9.8 billion in FY25—a 21% increase from the previous year. The US alone accounts for around 40% of India’s total pharma exports, largely due to the country’s dependence on affordable generic drugs supplied by Indian manufacturers.
A 200% tariff could drastically affect competitiveness and market access, potentially leading to a sharp decline in exports from India’s generics industry.
India and the US are currently negotiating a mini-trade agreement, and there’s optimism that these proposed tariffs could be addressed as part of the deal. If the agreement is reached before the August 1 implementation date, it may shield Indian exports from the full brunt of the new tariffs.