A major decision of US President Donald Trump has created a stir in world politics as well as India’s economy. The ‘Sanctioning Russia Act of 2025’, brought to further tighten the sanctions related to Russia, has received Trump’s approval. Under this law, heavy tariffs of up to 500 percent can be imposed on those countries which are trading oil, gas or other important commodities with Russia. India is also included in such countries, hence this decision is expected to have a direct impact on India.

India has been purchasing large quantities of crude oil and other energy resources from Russia for the last few years. After the Ukraine war, when many western countries distanced themselves from Russia, India met its energy needs by buying cheap Russian oil. India also benefited economically from this. But now the new law of the Trump government has made this path difficult. If India continues to buy oil and other goods from Russia, the US can impose tariffs of up to 500 percent on products coming from India.

Which sectors will be most affected

IT and Tech Sector- India’s IT sector is largely dependent on America. A major part of the income of big IT companies comes from the American market. Due to increasing tariffs and trade tensions, American companies may reduce spending on Indian IT services. This will affect new recruitments and may also increase the risk of job cuts.

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Textile and Garment Industry- A large part of the clothes and readymade garments from India goes to America. If heavy taxes are imposed on these, Indian products will become expensive. Due to this, American buyers can turn to other countries. This will have a direct impact on the factories and lakhs of workers working there.

Pharma Sector- India is called the pharmacy of the world and America is the largest market for Indian medicines. Due to increase in tariff, Indian medicines will become expensive, which may reduce exports. This may affect the earnings and jobs of pharmaceutical companies.

Auto and auto parts- Auto parts and some vehicle parts are sent to America from India. If the tariff increases, their exports may reduce, which may create a job crisis in this sector as well.

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Trump tarifs: US President Donald Trump has now announced to impose 50 percent new tariffs on copper after imposing heavy tariffs on steel and aluminum. He has also warned that after one year, the rates of tariffs on pharmaceuticals can be increased to 200 percent. Along with this, it has also been made clear that the time limit of tariff will not be extended from August 1. His decision will have a direct impact on economy around the world.

This step of Trump also has special significance for New Delhi because India is a big exporter country in America in the field of pharmaceuticals. Along with this, India is also a big supplier in the US.

Trump’s Warning

The US President has also announced to impose an additional tariff of 10 percent on a group of BRICS countries. He said that this is not a serious group. However, they believe that BRICS is a major challenge before the US dollar. He also said that if you want to challenge the dollar, then you will have to pay the price as a tariff.

In fact, since Republican’s return to the US power, the rates of tariffs on metals are being increased continuously. US Commerce Minister Hovald Lutenik said in a conversation with CNBC that new rates could be implemented in late July or from August 1. Trump warned that Washington will soon announce tariffs on pharmaceuticals, giving time to drug manufacturers, so that they start their operations by bringing them to the US.

What is the effect on India

If we talk about the impact of American tariffs on India, then during the financial year 2024-25, India has exported 2 billion dollars of copper and copper products worldwide. In the US, it has sent 17 percent of the total exports $ 360 million to the US.

According to commercial data, India exports 26 percent of the total copper in Saudi Arabia and then 18 percent copper in China, while the third is the US, where 17 percent of the total export is exported. Copper is used from energy and manufacturing to infrastructure. In such a situation, if the demand for copper in America is reduced due to the new tariff, then it will directly affect America’s domestic industries.

Whereas, India’s pharmaceutical sector will suffer the most injuries from American tariffs. America is a large market for Pharma, where the financial year 2024-25 was supplied to $ 9.8 billion. This is 21 percent i.e. $ 9.1 billion more than a year ago. That is, about 40 percent of India’s total pharma was exported to America last year. In such a situation, due to 200 percent tariff on the pharma sector by the US, the drugs being supplied in the US can have a big impact, which is getting cheap there.

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