What do Trump’s Copper and Pharma Tariff Threats Mean for India?

Donald Trump’s latest trade remarks hint at a dramatic policy shift if he returns to the White House. He has threatened a 50% tariff on copper imports and up to 200% tariffs on pharmaceutical products, targeting countries he accuses of unfair trade India among them. For India, these threats carry both economic and strategic consequences.

Copper is not a major Indian export to the US, but India’s pharma sector is. Generic medicines made in India dominate US pharmacy shelves because they’re high quality and low cost. If a 200% tariff is imposed, prices will shoot up in the US and Indian firms could lose their edge. Estimates suggest that US generic drug costs could rise by 25% to 40%, making treatment less affordable for millions. Companies like Sun Pharma, Cipla and Dr. Reddy’s may see margins tighten or explore shifting operations partially to the US to avoid duties.

Strategically, such measures would signal a more protectionist America and strain trade ties. India may choose to retaliate or actively seek deeper partnerships with other regions like the EU or Africa. This is not the first time Trump has taken a tough line, he did the same during his last term. So while these may be just early campaign promises, Indian policymakers and exporters will be watching closely, preparing contingency plans in case talk turns into action.