Trump Slaps 50% Tariff on Copper Imports, Warns of 200% Tariffs on Pharmaceuticals and Semiconductors

Date: July 9, 2025 | Keywords: Trump copper tariff, US pharma tariff, India exports hit, 200 percent drug duty, US-India trade relations, BRICS dollar challenge, Trump tariffs 2025

In a move that could significantly impact global trade dynamics and India’s export economy, US President Donald Trump on Tuesday announced a fresh 50% import tariff on copper, warning that tariffs on pharmaceuticals and semiconductors could soar to 200% within a year. The statement was made during a Cabinet meeting at the White House, where Trump outlined his aggressive stance on trade protectionism and reiterated threats against BRICS nations for challenging the US dollar’s dominance.

What Did Trump Announce?

President Trump declared a 50% tariff on all imported copper, extending the strategy previously used for steel and aluminium. He also stated that foreign pharmaceutical products and semiconductors will soon face tariff hikes of up to 200%, giving manufacturers approximately 12–18 months to “get their act together” before the hikes come into effect.

“If they have to bring pharmaceuticals into the country, they’re going to be tariffed at a very, very high rate—like 200 percent,” Trump said.

The president added that more product categories would be included in the next phase of tariff impositions, calling them “big ones,” and emphasized the need to rebuild domestic manufacturing in strategic sectors.

Why Is This Significant for India?

India could be one of the hardest-hit countries by these policy changes, particularly in the copper and pharmaceutical sectors:

• In FY 2024–25, India exported $2 billion worth of copper and related products, with the US accounting for $360 million or 17% of that total. The rest went primarily to Saudi Arabia (26%) and China (18%).

• India is also the largest generic drug supplier to the US, with pharma exports touching $9.8 billion in FY25 — a 21% increase from $8.1 billion in FY24. The US now accounts for a staggering 40% of India’s total pharmaceutical exports.

A 200% tariff on drug imports could disrupt this trade relationship severely, especially given that Indian pharmaceutical companies play a crucial role in delivering low-cost, life-saving generic medicines to the American healthcare market. The threat also raises concerns about drug pricing, accessibility, and potential supply chain disruptions in the US.

Impact on Global Copper and Pharma Supply Chains

Copper is considered a critical industrial metal with applications ranging from renewable energy and electronics to infrastructure and manufacturing. While India could face reduced demand from the US, experts believe that India’s domestic infrastructure boom and alternative markets could help absorb some of the shortfall.

In contrast, the pharmaceutical sector is more vulnerable, as Indian drugmakers depend heavily on the US FDA-regulated generic market for revenue. Industry leaders warn that the proposed tariffs could make Indian medicines significantly costlier, hurting both export earnings and US consumer interests.

Trump Targets BRICS Over Dollar Challenge

In a parallel attack, President Trump took aim at the BRICS bloc (Brazil, Russia, India, China, South Africa), accusing it of attempting to undermine the supremacy of the US dollar. He reiterated his threat of a blanket 10% tariff on all imports from BRICS countries, stating:

“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.”

Trump dismissed the economic alliance as “not a serious grouping” but acknowledged its influence in global monetary debates, especially amid ongoing discussions about de-dollarization and alternative currency frameworks.

Industry Reactions & Outlook

Global markets reacted cautiously to the announcement. While US manufacturers and domestic producers welcomed the move as a boost for “Made in America” initiatives, international exporters and trade groups warned of retaliatory actions and heightened geopolitical tensions.

Indian trade bodies are calling for diplomatic dialogue to de-escalate the situation, especially regarding pharmaceutical exports. Experts also note that such high tariffs could violate World Trade Organization (WTO) rules and may prompt legal challenges.

What to Watch For:

• Impact on India’s pharma stocks and copper producers

• Response from Indian Ministry of Commerce and Foreign Affairs

• Potential retaliatory tariffs from BRICS nations

• Trade reactions from EU, China, and Mexico

• Future announcements on semiconductors and tech goods

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