President Donald Trump announced on Tuesday that the US will impose 50% tariff on copper imports. He also warned that tariffs on pharmaceuticals could rise to 200% after a year.
"Today we're doing copper. I believe the tariff on copper, we're going to make it 50," Trump told a cabinet meeting Tuesday.
Commerce Secretary Howard Lutnick told CNBC that the rate would likely be implemented at the end of July or on August 1. He added that the studies on pharmaceuticals and semiconductors would be completed by the end of the month and the Trump administration will set policies thereafter.
The US accounted for 17% of India's total copper and copper products exports globally, at $360mn, in 2024–25. The US is also the largest market for Indian pharmaceuticals, accounting for 40% of its exports. India exported $9.8bn worth of drugs to the US in FY25, registering a 21% growth during the same period.
Trump has also announced plans to impose steep tariffs on imported semiconductors and pharmaceuticals, with levies on medicines potentially going as high as 200%. However, he noted that drugmakers would be given roughly a year to “get their act together” before the tariffs take full effect.
"They're going to be tariffed at a very, very high rate, like 200%,” he said. A 200% levy on the sector could severely impact demand, especially as India's generics industry plays a key role in supplying affordable medicines in the United States. Earlier, Trump imposed similar tariffs on steel and aluminium.
After Trump's announcement, shares of Hindustan Copper and Vedanta are likely to be in focus today. Indian equity markets have already opened with a negative bias. The BSE Sensex fell 111 points to 83,601, while the NSE Nifty dropped 25 points to 25,496.65.
