American Marxist economist Richard Wolf said that America is trying to become the world’s strict country against India, but in reality this step is disastrous for itself. He said that according to the United Nations, India is now one of the largest countries in the world. America’s India to tell what it has to do, it is as if a rat punched the elephant.

US President Donald Trump has implemented 50% tariff on India. This fee is double the rates already existing. India buys oil from Russia. Because of this, the US has set up 25 per cent tariff separately, which the Washington Ukraine considers the strategy to stop war. However, India has criticized the move and called it a decision taken wrong and without thinking.

BRICS gets indirect advantage
Richard Wolf explained that India will change its strategy with this move of America. He said that if America closes its way for India, then India will find another place to sell its things. India can now shift the export of its equivalence to BRICS countries, such as Russia, China, Brazil, South Africa and recently joined new members (Egypt, Ethiopia, Indonesia, Iran, UAE). Meanwhile, BRICS aims to challenge Western financial dominance and find a dollar option.

G7 vs Bricks
Wolf said in podcast that the world production share of BRICS countries is 35 percent. On the other hand, G7’s stake has come down to 28 percent. According to him, Trump’s policy of tariff and pressure is helping BRICS to become stronger and integrated economic blocks.

Trying to dismiss BRICS
Trump has many times rejected BRICS as a small group. In February, he said that the BRICS is over. He also threatened that if the BRICS makes its currency, then the US would impose 100% tariff. Wolf said that India has an old and complex relationship with America since the Soviet period. He warned America believing that India is like another small country, but it is a completely different rival. This step can not only remove India from America, but can also create a new economic and political balance in Asia.

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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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Trump Tariff: The havoc of the tariff imposed by US President Donald Trump has created a stir in the global market. Although the pharmaceuticals, ie drugs, were exempted from it while applying the tariff, but President Trump has soon indicated to put big tariffs on it.

India’s industry has been dependent to a large extent in exporting medicines to America. In such a situation, if a tariff is imposed on it by Trump, then it can have a big effect. During a program by the National Republican Congressunal Committee, President Trump said that by imposing tariffs, pharmaceutical companies will be motivated to work in America.

According to the Pharmaceutical Export Promotion Council of India, America has been a major export market of Indian medicine. In FY 2024, India exported drugs worth $ 27.9 billion worldwide, out of which about 31%, ie $ 8.7 billion, was exported only to the US.

According to reports, India supplies about 45% generic medicines and 15% other medicines to the US. Pharmaceutical companies such as Dr. Reddy, Aurobindo Pharma, Zudus Lifescienes, Sun Pharma and Gland Pharma earns 30 to 50 percent of their total earnings from the US.

The experts warned that if a tariff is imposed on medicines on behalf of America, then it will affect both Washington and New Delhi. This will increase the production cost, the competitive price for the producer will end and the consumer will have to pay a higher price.

Experts of HDFC Securities told Financial Daily Mint that if a tariff is placed on the pharma on behalf of America, then it will have a bad effect on both its countries.

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