US President Donald Trump has now warned of up to 200% tariffs on pharmaceutical imports and 50% on copper. Trump is expanding the scope of his trade policies that have caused global market uncertainty. These additions would complement existing tariffs on steel, aluminium and vehicle imports, although the implementation timeline remains unspecified.The Trump administration has identified these tariffs as a vital revenue stream. Treasury Secretary Scott Bessent reports that the administration has amassed roughly $100 billion to date, with estimates indicating potential collections reaching $300 billion by December. Historically, the United States has got approximately $80 billion in yearly duty revenue.
What Donald Trump has said on copper, pharma tariffs
- Trump announced on Tuesday his firm stance on the August 1 deadline for increased US tariffs, whilst introducing new plans for a 50% tariff on copper imports.
- The announcement of the copper tariff, which expands Trump’s sector-specific measures since his return to office, caused significant increases in the metal’s market prices.
- “Today we’re doing copper,” the president told a cabinet meeting Tuesday according to an AFP report.. “I believe the tariff on copper, we’re going to make it 50 percent.”
- Commerce Secretary Howard Lutnick informed CNBC that the implementation would likely occur in late July or August 1.
- Regarding pharmaceuticals, Trump indicated an upcoming announcement, noting that manufacturers would receive approximately 18 months to establish domestic operations.
- “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,” he said. “They’re going to be tariffed at a very, very high rate, like 200 percent.”
- According to Lutnick’s CNBC interview, studies on pharmaceuticals and semiconductors would conclude by month’s end, after which Trump would establish relevant policies.
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How Will It Impact India?
According to Bipin Sapra Partner and Leader, Indirect Tax and Economic Policy, EY India, high tariff rates on copper and pharmaceutical products in the US will disrupt the current exports to US from across the globe. “There will be a substantial increase in the price of these products in the US market. The US is a major buyer of Indian pharmaceuticals and copper products; being 35-40% of the India export basket of pharma products and around 15% of the copper basket,” Sapra told TOI.“Any decrease will accordingly, impact the industry, prompting them to look at other markets and become more competitive,” he said.India is evaluating the consequences of Trump’s copper import tariffs, said Union Coal and Mines Minister G Kishan Reddy on Wednesday. Government officials indicate that Trump’s 50% import duty on copper will have limited effect due to strong domestic demand within India. Industry analysts told ET these tariffs could lead to copper dumping from other markets into India, potentially reducing prices and affecting domestic manufacturers’ profits.“We are examining the impact of these tariffs on the copper exports,” Reddy said.“Copper consumers in the USA will be most impacted because more than 50% of their requirement is met through imports,” a domestic industry representative told ET, noting that India’s copper exports to the US amount to less than $ 300 million.Aniket Dani, Director, Crisil Intelligence told TOI, “If imposed, high tariffs on Indian pharmaceutical exports could have a significant impact, given the US accounts for ~40% of India’s $24 billion formulation exports. With US exports making up ~17-19% of India’s overall pharma market (which includes domestic formulations, formulation exports and bulk drug exports), industry players may diversify to other regions, while those with high exposure to US might consider setting up US-based manufacturing facilities to mitigate risks.”Also Read | Bold, but difficult mission! How India wants to counter China’s rare earth magnets monopoly – explained
