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US President Donald Trump on Tuesday announced 50 per cent tariffs on copper, after having implemented similar duties on steel and aluminium. He added that tariffs on pharmaceuticals could rise to 200 per cent after a year.
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This is significant for India, which exported $2 billion worth of copper and copper products globally in 2024–25, with the US accounting for $360 million, or 17 per cent, of that total. The US is also India’s largest overseas market for pharmaceuticals. Drug exports to the US rose to $9.8 billion in FY25, up 21 per cent from $8.1 billion the previous year, and now account for 40 per cent of India’s total pharma exports.
Trump said he is planning to impose tariffs on imported semiconductors and pharmaceuticals, with medicine tariffs potentially reaching 200 per cent. However, he said drugmakers would be given about a year “to get their act together”.
“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,” Trump told reporters during a Cabinet meeting at the White House.
Reiterating his threat of a 10 per cent tariff on BRICS, Trump said the bloc was “not a serious grouping” but acknowledged that it is challenging the US dollar. “It’s alright if you want to challenge the dollar. But they will have to pay the tariffs. I don’t think they want that,” he said.
“If they have to bring the pharmaceuticals into the country… they’re going to be tariffed at a very, very high rate, like 200 per cent. We’ll give them a certain period of time to get their act together,” he said.
“We’re going to be announcing pharmaceuticals, chips, and a couple of other things — you know, big ones,” Trump added, while unveiling the new tariff on copper.
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Trade data showed that the US is India’s third-largest copper export market, after Saudi Arabia (26 per cent) and China (18 per cent). However, given copper’s status as a critical mineral and its extensive use across infrastructure, energy and manufacturing, India’s domestic industry is likely to absorb any decline in US demand resulting from the proposed tariffs.
A 200 per cent tariff on pharmaceutical exports could severely impact demand, especially as India’s generics industry plays a key role in supplying affordable medicines to the US healthcare system.
Reiterating his threat of a 10 per cent tariff on BRICS, Trump said the bloc was “not a serious grouping” but acknowledged that it is challenging the US dollar. “It’s alright if you want to challenge the dollar. But they will have to pay the tariffs. I don’t think they want that,” he said.
© The Indian Express Pvt Ltd
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