US President Donald Trump has made a bold move to shake up global trade again. He announced that imported medicines not made in the USA will now face a 200 percent import duty (tariff). Similarly, copper imports will have a 50 percent tariff.
This is part of Trump’s "America First" policy. His aim is to support US-made products, create local jobs, and reduce America’s dependence on foreign goods.
Why is He Doing This?
Trump believes that foreign companies, especially in pharmaceuticals and mining, have been taking advantage of the US market for years.
He wants companies to set up factories in America to make medicines and other important products locally.
By making imported goods more expensive, he hopes that more companies will choose to manufacture in the US, giving a boost to the American economy.
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What is Reciprocal Tariff?
Trump has also talked about a "reciprocal tariff" system. This means:
- If any country puts high taxes on American goods, then the US will do the same to their goods.
- This, according to Trump, will help balance trade and protect US companies.
Why Copper?
Copper is used in:
- Electric vehicles (EVs)
- Military tools
- Power grid systems
So, Trump wants to encourage more local mining and copper production to reduce imports.
How Will This Impact India?
India is a major exporter of generic medicines to the US. With this new 200 percent tariff:
- Indian pharma companies will either need to start production in the US, or
- Face huge taxes, making their products more expensive.
- This may also affect US customers, as medicine prices could go up.
