US President Donald Trump has announced new 50 per cent tariffs on copper, after having implemented similar duties on steel and aluminium imports.
He also warned that the duties on pharmaceuticals imported by the United States could increase by as much as 200 per cent after a year. The US President clarified that he would not extend an August 1 deadline for higher US tariffs to take effect on dozens of economies across the globe.
The move is significant for New Delhi, as the US is India’s largest overseas market for pharmaceuticals and a major exporter of copper and copper products.
What Trump Said
“Today we’re doing copper. I believe the tariff on copper, we’re going to make it 50 per cent,” Trump told a cabinet meeting Tuesday.
The copper levy would broaden a slate of sector-specific actions the Republican has imposed since returning to the White House and sent prices for the metal soaring.
Commerce Secretary Howard Lutnick told CNBC shortly afterwards that the rate would likely be implemented at the end of July or on August 1.
Trump also said Washington would soon make an announcement on pharmaceuticals, but officials would allow manufacturers time to relocate their operations into the country.
“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,” he said.
In recent months, Trump has ordered probes into imports of copper, pharmaceuticals, lumber, semiconductors and critical minerals that could lead to further levies.
Lutnick told CNBC that the studies on pharmaceuticals and semiconductors would be completed by the end of the month, with Trump to set policies thereafter.
Trump also reiterated his threat of imposing a 10 per cent tariff on BRICS, saying the bloc was “not a serious grouping”. However, he 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.
How These Tariffs Will Impact India
India exported $2 billion worth of copper and copper products globally in 2024-25. Of this, exports to US markets amounted to $360 million, or 17 per cent. America is India’s third-largest market for copper exports after Saudi Arabia (26 per cent) and China (18 per cent), according to trade data.
But copper is a critical mineral and is extensively used across sectors, including energy, manufacturing, and infrastructure. Any decline in US demands following new tariffs is likely to be absorbed by the domestic industry.
Where it might hurt India the most is the pharmaceutical sector. The US is India’s largest overseas pharma market, with exports rising to $9.8 billion in FY25, up 21 per cent from $8.1 billion the previous year. This accounts for a total of 40 per cent of India’s total pharma exports.
A 200 per cent levy on the sector could severely impact demand, especially as India’s generics industry plays a key role in supplying affordable medicines in the United States.
India is in the process of closing a mini-trade deal with the US, and all sectoral tariffs are likely to be covered under it. If the deal is finalised before the August 1 deadline, the new tariffs are likely not to impact Indian markets.