US President Donald Trump has announced a 50 percent tariff on copper imports, adding to the list of duties already in place on steel and aluminum. He also warned that tariffs on pharmaceutical imports could go up by as much as 200 percent after a year.

The announcement is important for India, as the US is one of the biggest buyers of Indian pharmaceuticals and a major market for copper exports.

"Today we're doing copper. I believe the tariff on copper, we're going to make it 50 percent," Trump said during a cabinet meeting on Tuesday.

This new tariff will expand the US President’s targeted trade actions since his return to office. Soon after his announcement, copper prices jumped in global markets.

US Commerce Secretary Howard Lutnick told CNBC that the copper tariff could come into effect by the end of July or on August 1.

Trump also shared that a big decision on pharmaceuticals is expected soon. However, companies would be given some time to shift operations to the US.

"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. They're going to be tariffed at a very, very high rate, like 200 percent," he said.

Over the last few months, Trump has ordered investigations into imports of items like copper, pharmaceuticals, lumber, semiconductors, and key minerals, which could lead to more tariffs in the future.

According to Lutnick, the studies on pharmaceuticals and semiconductors will be wrapped up by the end of this month, and Trump will announce his decisions based on the findings.

He also repeated his threat to impose a 10 percent tariff on BRICS countries, calling the group "not a serious grouping", though he admitted it challenges the US dollar.

"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 said.

India exported nearly $2 billion worth of copper and copper products in the financial year 2024-25. Of this, about $360 million (17%) went to the US, making it India's third-largest copper market, after Saudi Arabia (26%) and China (18%).

Since copper is widely used in infrastructure, manufacturing, and energy, a drop in US demand might be manageable for Indian industries, as it could be used more domestically.

But the bigger concern is in the pharma sector.

The United States is India’s largest buyer of pharmaceutical products. In FY25, Indian pharma exports to the US jumped 21 percent to $9.8 billion, making up 40 percent of India’s total pharma exports.

If the US imposes a 200 percent tariff, it could seriously hurt demand, especially since Indian generic medicines play a key role in keeping US healthcare costs low.

India and the US are currently working on finalizing a mini trade deal, which could cover tariff-related issues across sectors. If this deal is signed before the August 1 deadline, it may protect Indian exports from the new duties.

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