India-US Tariff War / Trump targets India, will reduce its power by imposing 250% tariff on pharma

India-US Tariff War: US President Donald Trump has targeted India on his trade, especially the pharma and semiconductor industries. In an interview to CNBC on Tuesday, Trump announced that tariffs on imported drugs could rise to 250 per cent, which would start at a low level initially and gradually increase. Along with this, he also mentioned plans to impose new duties on foreign semiconductors. India, which is a major exporter in the global pharma industry and is making rapid progress in the semiconductor sector, is now in the Trump administration's crosshairs.

Tariffs announced on pharma and semiconductors

Trump said in the interview, "We will initially impose a small tariff on drugs, but in a year or a year and a half it could go up to 150 per cent and then 250 per cent. We want medicines to be made in our country itself." He also said that tariffs on semiconductors and chips would be announced in the next week or so, although details were not given. Trump aims to bring the pharmaceutical industry back to the US, and for this he has demanded a huge reduction in costs from foreign drug suppliers, otherwise he has warned them to face additional penalties.

Threat to increase tariffs in 24 hours

Trump, while calling India an imbalanced trading partner on CNBC's 'Squawk Box', said, "India is the country that charges the highest tariffs. We do very little trade with India because its tariffs are so high." Accusing India of buying crude oil from Russia and "fuelling the war machine", he said that the tariffs on India will be increased "significantly" in the next 24 hours. Trump had recently announced a 25 per cent duty on products imported from India and also talked about imposing a separate penalty on India for buying oil from Russia.

India's response and allegations of double standards

In response to Trump's statements, India has accused the US and the European Union of adopting double standards. India rejected the criticism of its purchase of crude oil from Russia, saying it was "unreasonable and unreasonable". India explained its position by pointing to the US and the EU's ongoing trade relations with Russia.

Challenges and opportunities for India

Trump's policies could pose a major challenge to India's pharma and semiconductor industries. India is one of the world's largest generic drug exporters, and many companies in the semiconductor sector are also investing in India. Trump's tariffs could hurt Indian exporters, but it could also be an opportunity for India to promote self-reliance. Experts believe that India will have to take strategic steps to further strengthen its domestic production and maintain its position in the global supply chain.