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How Will Trump’s 50% Copper & 200% Pharma Tariffs Impact India’s Economy?

Recent US tariff hikes on copper (50%) and potential 200% duties on pharmaceuticals could significantly impact India’s export-driven sectors. For competitive exam aspirants, understanding these developments is crucial, as they align with syllabi covering international trade, economic policies, and India-US relations.

1. What Are the New Tariffs?
Copper: 50% import duty imposed by the US.
Pharmaceuticals: Potential tariffs of up to 200%, with a 1–1.5-year adjustment window for companies.

2. Why Does This Matter to India?
Copper Exports: India shipped $360 million worth of copper to the US in 2024–25 (17% of total exports).
Pharma Exports: The US is India’s largest drug market, with $9.8 billion in exports (40% of India’s total pharma exports).

3. Potential Consequences
Copper: Domestic demand may absorb some losses, but exporters face revenue declines.
Pharma: A 200% tariff could cripple affordability, disrupting India’s generic drug supply chain to the US.

4. Trump’s Broader Trade Stance
Threatened 10% tariffs on BRICS nations, dismissing the bloc as “not serious” despite its challenge to the US dollar.
Focus on boosting US manufacturing by penalizing imports.

Sample Q&A for Competitive Exams
Q1: What percentage tariff did Trump impose on copper imports?
A: 50% tariff on copper, following earlier duties on steel and aluminum.
Q2: How much of India’s pharma exports go to the US?
A: 40% (worth $9.8 billion in FY25).
Q3: What is the potential tariff rate on pharmaceuticals?
A: Up to 200%, with a 1–1.5-year grace period.
Q4: Which sector could face a more severe impact than copper?
A: Pharmaceuticals, due to higher dependency on US demand.
Q5: What did Trump say about BRICS and tariffs?
A: He threatened 10% tariffs, calling BRICS “not a serious grouping” despite its dollar challenge.