Trump plans 200% tariff

 

United States

• Huge pharma tariff threat: President Trump has threatened steep import tariffs of up to 200% on pharmaceutical products. Experts warn this could raise drug prices and cause shortages—especially harming generics and low-income groups. Legal challenges are already under way, and enforcement may be delayed until 2027. India’s pharmaceutical exporters are not yet directly affected. 

• Analysis challenges “one-sided” trade narrative: A study by the Global Trade Research Initiative (GTRI) finds that the U.S. actually enjoys a $35–40 billion surplus in economic benefits with India when factoring in earnings from tech, finance, and education, contradicting Trump’s claims of a lopsided trade relationship. 

• Bilateral trade talks ongoing: India and the U.S. remain in negotiation for a bilateral trade agreement, despite recent trade tensions. India’s Commerce Minister, Piyush Goyal, indicates a deal may be reached by November 2025, although "a little bit of geopolitical issues" are complicating the path forward. 

         India–U.S. Dynamics     

• Military cooperation continues: Indian Army troops have departed for Yudh Abhyas 2025, a joint military exercise in Fort Wainwright, Alaska (September 1–14). The drills will focus on high-altitude warfare, heliborne operations, and surveillance, among other capabilities. 

• Diplomatic tensions over trade and energy: The backdrop to these developments includes the ongoing 2025 U.S.–India diplomatic and trade crisis. In August, the U.S. imposed cumulative 50% tariffs on Indian goods—initially 25% as "reciprocal" and an additional 25% tied to India’s purchase of Russian oil. India denounced these measures as "unfair, unjustified and unreasonable" and reaffirmed its strategic autonomy. 

• Trump claims India offered tariff relief: On September 1, the U.S. President claimed that India offered to reduce its tariffs on U.S. goods to zero, even as bilateral relations remain under strain. Political commentary adds fuel: Former U.S. National Security Advisor Jake Sullivan alleges that Trump prioritized family business interests in Pakistan over strengthening India–U.S. ties, raising concerns about trust among allies. 

• Strategic recalibration underway: Analysts note that these tensions may be pushing India closer to taking a more autonomous foreign policy stance—balancing relations with Russia, China, and other partners beyond Washington's influence.