U.S. President Donald Trump has escalated his protectionist trade agenda, announcing a sweeping 50% tariff on copper imports and warning that pharmaceutical products imported into the U.S. could face tariffs as high as 200% within a year. The move could deal a significant blow to India, a major exporter of both copper and generic medicines to the American market.
“Today we’re doing copper. I believe the tariff on copper—we’re going to make it 50%,” Trump said during a cabinet meeting on Tuesday. The announcement sent copper prices soaring and widened the list of sector-specific tariffs the Trump administration has pursued since his return to office.
Commerce Secretary Howard Lutnick later confirmed the copper tariff would be implemented by the end of July or August 1.
Even more concerning for New Delhi is Trump’s looming tariff on pharmaceutical imports. “We’re going to give people about a year, a year and a half to come in [to the U.S.], and after that, they’re going to be tariffed at a very, very high rate, like 200%,” Trump stated, suggesting the administration wants pharma manufacturers to shift operations to the U.S.
The U.S. is India’s largest pharmaceutical export market, with shipments surging to $9.8 billion in FY25—a 21% rise from the previous year—making up 40% of India’s total pharma exports. A 200% duty could dramatically slash demand, especially for India’s generic drug producers, who are key suppliers of affordable medications in the U.S.
India’s copper exports could also take a hit. Of the $2 billion in copper and copper products exported globally in FY25, $360 million—17%—went to the U.S., making it India’s third-largest copper buyer after Saudi Arabia and China. While copper demand may shift to domestic industries, the global supply chain could still face turbulence.
Trump also reiterated his threat of a 10% tariff on BRICS countries, calling the group “not a serious grouping,” though he acknowledged its challenge to U.S. dollar dominance.
Trade tensions may ease, however, if India and the U.S. conclude an ongoing mini-trade deal. Reports suggest sector-specific tariffs, including on copper and pharma, could be addressed in the deal. If finalized before the August 1 deadline, India may avoid the brunt of Trump’s latest tariff wave.
As the clock ticks toward August, Indian exporters and policymakers alike are watching closely—hoping diplomacy can blunt the economic fallout.