Published on: July 9, 2025
By: Bharat Global Time | International Trade & Economy Desk
Major Blow to India: US Imposes Steep Tariffs on Pharma, Copper & BRICS Trade
In a sharp escalation of protectionist policy, former US President Donald Trump, currently campaigning for a second term, has announced massive new tariffs on Indian pharmaceutical imports, citing “unfair subsidies and trade imbalance.”
The move includes:
- 200% tariff on generic drugs and pharmaceutical raw materials from India
- 50% tariff on copper products, impacting India and Chile
- 10% blanket tariffs on all imports from BRICS nations (Brazil, Russia, India, China, South Africa)
This decision could severely impact India’s $9 billion pharmaceutical exports to the US — the largest export market for Indian drugmakers.
Trump’s Justification: ‘America First. No More Free Ride!’
Speaking at a rally in Ohio, Trump declared:
“India has taken advantage of our market for too long with dirt-cheap drugs that undercut American companies. No more. We will make American pharma great again!”
He accused BRICS of forming a “hostile economic bloc” that threatens US industrial and medical security.
India’s Pharma Sector Faces the Heat
India is the world’s largest supplier of generic drugs, contributing over 40% of all generic medicines consumed in the US. Companies like Sun Pharma, Dr. Reddy’s, Cipla, Lupin, and Aurobindo stand to lose billions.
Impact Summary:
- Stock market dip expected in pharma sector
- Supply chain disruptions in raw materials like API (active pharmaceutical ingredients)
- Possible price hikes in the US for essential medicines
“This is not just an economic decision — it’s a health crisis for America,” said one Indian pharmaceutical CEO.
India’s Response: Talks or Retaliation?
The Ministry of Commerce is reportedly preparing a formal complaint to the WTO and considering countermeasures, including:
- Retaliatory tariffs on American medical devices and tech goods
- Reevaluation of US investments in Indian pharma parks
- Fast-tracking trade deals with the EU and Gulf nations to offset losses
Sources say Prime Minister Narendra Modi may also raise the issue at the next BRICS emergency meeting, as the bloc faces direct trade aggression.
Why BRICS is in the Crosshairs
Trump’s move appears timed just days after the BRICS grouping announced:
- A new unified payment system outside SWIFT
- Plans to trade oil and medicines in local currencies
- Increased pharma exports to Latin America and Africa
Analysts believe the tariffs are aimed at disrupting BRICS’ growing economic cohesion and restoring US dominance in the global pharmaceutical and resource markets.
Experts React: Trade War 2.0 Incoming?
Global economists are calling this the beginning of a new trade war — not just with China, but with a rising Global South.
What They’re Saying:
- “The pharma tariff is political and populist — but dangerous for global health.”
- “India must pivot fast toward EU, Africa, and ASEAN to protect its export base.”
- “BRICS will likely see this as a declaration of economic hostility.”
Follow Bharat Global Time for exclusive updates on US-India trade, BRICS diplomacy, and the global pharma economy.
