Trump, in a blunt Truth Social post, defended the tariffs by pointing to India’s trade policies and global alliances.
"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25 per cent, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA."
This latest development follows months of stalled trade talks between the two countries and introduces a significant cost barrier for Indian exporters especially in the chemical, pharmaceutical, and textiles sectors.
Product Categories at Risk
Top Indian Inorganic Chemical Exports to the US in 2024 ($ Thousand)
Key Impact Summary
Iron oxides and hydroxides exports surged by 694 per cent, the highest among all listed categories, underscoring increased demand in pigments, coatings, and construction.
Inorganic acids and oxygen compounds, such as hydrochloric acid, rose by 285 per cent, while phosphates and polyphosphates climbed 227 per cent, driven by applications in water treatment and fertilisers.
Exports of chromium oxides, used in metallurgy and pigments, grew over 215 per cent, and fluorides advanced 170 per cent, reflecting their importance in aluminum and chemical synthesis.
Products like aluminum oxide (corundum) and oxometallic salts grew by over 150 per cent, showing demand in ceramics, refractories, and catalysis.
Hydrazine and hydroxylamine salts, niche intermediates for pharma and agrochemicals, grew 122 per cent, while chlorides and related halides showed solid 119 per cent growth.
Nitrites and nitrates, essential in explosives, food preservation, and fertilisers, rose by 99 per cent, just under the 100 per cent threshold.
Top Indian Organic Chemical Exports to the US in 2024 ($ Thousand)
Key Impact Summary
Halogenated derivatives of hydrocarbons saw a remarkable 201 per cent surge, rising from $41.5 million to over $125 million—the highest growth among all categories.
Ketones and quinones also posted robust growth of 168.6 per cent, followed by carboxylic acids with additional oxygen function, which increased by nearly 90 per cent.
Moderate gains were recorded in amine-function compounds (55.1 per cent) and cyclic hydrocarbons (45.7 per cent), reflecting steady demand.
Key pharmaceutical intermediates like heterocyclic compounds with nitrogen hetero atoms and oxygen-function amino-compounds grew 42.7 per cent and 37.6 per cent, respectively.
Meanwhile, phenols and phenol-alcohols were the only category to decline, dropping 24.5 per cent, suggesting a shift in demand or production patterns.
Trump’s Tariff Threat Casts Shadow Over India’s Booming Pharma Exports to US
India’s pharmaceutical exports to the US surged significantly between 2018 and 2024, led by medicaments in measured doses (rising from $4.8 billion to $8.57 billion, +78.2 per cent) and blood products (+196 per cent). However, the newly announced 25 per cent tariff by Donald Trump, effective August 1, 2025, poses a serious threat to this trade. Key segments like generic drugs, specialty formulations, and therapeutic products may face pricing pressure and reduced competitiveness in the US market. To mitigate the impact, Indian exporters must diversify markets, push for tariff waivers, and focus on high-margin, innovation-driven pharmaceutical products.
ALCHEMPro News Desk (VK)
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