Trump threatens 200% pharma, 50% copper tariffs: What it means for India
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US President Donald Trump on Tuesday (local time) announced a 50 per cent tariff on all copper imports, marking his fourth major tariff hike during his second term. Trump also signalled a more severe move on the pharmaceutical sector, threatening a 200 per cent tariff on drug imports after a transition period of one to one-and-a-half years.
“Today we’re doing copper,” Trump said during a Cabinet meeting on Tuesday, without offering a timeline for when the new tariff will come into effect. Copper, pharmaceuticals, semiconductors, and lumber had been exempt from tariffs in Trump’s ‘Liberation Day’ announcements, which provided a huge relief for the sectors. Since then, however, the US president has repeatedly threatened levies on the sectors, which seem to now be materialising.
Commerce Secretary Howard Lutnick later told CNBC that while details on the copper duties were being implemented, studies on pharmaceutical and semiconductor imports were expected to conclude by the end of the month, after which formal decisions would be made.
What this means for India’s pharma exports
The United States is India’s largest pharmaceutical export market, accounting for 36.6 per cent of the country’s drug exports, worth $9.8 billion between April 2024 and February 2025, as earlier reported by Business Standard.
A potential 200 per cent duty on pharmaceuticals could severely impact India’s industry, which supplies large volumes of affordable medicine to the US. While Indian pharmaceutical stocks have remained largely unaffected in the immediate aftermath of Trump’s comments, experts caution that such levies could dampen demand, disrupt supply chains, and raise prices for US consumers.
Amid this, industry experts have already started looking to diversify their markets. However, these plans are unlikely to materialise until 2026, as the gestation period for any new market can take at minimum a year and a half to two years.
Copper exports also face pressure
The proposed copper tariff also poses a challenge. India exported $2.1 billion worth of copper in 2024, with the US accounting for over 15 per cent of that total, according to United Nations international trade data, as cited by Trading Economics. The 50 per cent import levy will likely raise the cost of Indian copper in the American market, potentially pricing it out in favour of domestic or alternative suppliers.
India-US mini trade deal in sight
The announcements come as India and the US are in talks to finalise a mini-trade deal by August 1, which may include sector-specific tariff exemptions. If concluded in time, this deal could help buffer India against the harshest implications of Trump’s tariff moves.
Still, the threats mark a continuation of Trump’s aggressive trade stance. Current US tariffs include 25 per cent on imported cars and parts, and 50 per cent on imported steel and aluminium. The new copper and potential pharmaceutical levies would further escalate tensions with key trading partners.
US pharma sector warns about costs
Over in the US, domestic manufacturers in the US—like Eli Lilly, Johnson & Johnson, and AbbVie—are expanding operations. However, the industry’s largest lobbying group, PhRMA, has warned that such tariffs could inflate costs, deter investment, and risk shortages, CNBC reported.
‘TACO’ unpredictability
Trump is known to be unpredictable with his trade policies, and it is unclear whether the 200 per cent pharma tariff will be realised, or if the president will pull another ‘TACO’ move that market analysts now know him for.
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