50% to 200%: Trump’s tariffs on copper and pharma could hurt India the most due to…, companies likely to be affected are…
New York: In a major move that can affect the global supply chain and severely affect the export-driven economies in the world, including India, United States President Donald Trump announced 50 percent tariff on imports crucial metal – copper, warning 200 percent tariff on pharmaceutical products, which will be imposed after 1 year grace period. The announcement is a major step in the US President’s protectionist trade plan, which has been hitting specific industries with little warning.
How Is Trump’s New Tariff Affecting India?
India is the largest supplier of generic medicines to America and an emerging country in copper-based manufacturing. Trump’s tariff on copper can shake up industrial supply chains. Meanwhile, proposed pharma duties hit a sector that profits billions of dollars from the United States. Amid the growing uncertainties in India-US trade relations, Indian exporters are now forced to work on new strategies.
What’s The Announcement?
The United States President has announced a 50 percent tariff on copper imports. He also warned of imposing 200 percent tariff on pharmaceutical products by the end of the year. These announcements are part of Trump administration’s sector-by-sector trade agenda that has already impacted sectors like – auto, steel and aluminium.
Why India Should Be Vigilant?
India is a major player in copper and pharmaceutical exports. After the tariff announcement, the country is facing serious implications on both sectors. These tariffs could hurt Indian companies eyeing the US market and reveal deeper weaknesses in the trade relationship between the two countries.
What Is The Impact On Pharmaceutical Industry?
Also known as ‘pharmacy of the world’, India sees US as its major market. In FY- 2023-24, the country has shipped more than USD8 billion pharmacy products to US. This year also America became the largest pharma export destination, with an export of USD9.8 billon.
However, the major trade link now faces a serious threat as Trump’s plan to impose 200% tariffs on imported drugs after a year grace period. This move can affect India’s generics industry.
Is India’s Copper Supply Chain In Jeopardy?
During FY 2024-2025, India’s copper and copper product exports totalled approx USD2 billion globally. US was the third largest importer, purchasing USD360 million (17%) of these exports following Saudi Arabia and China. This trade is major as several Indian industries supplying US companies with copper-based products, such as electrical equipment and EV components, rely on US demand. Increased domestic sourcing by American buyers to mitigate tariffs could negatively impact Indian businesses.
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