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The United States has identified India, alongside China, as a “state actor” facilitating the direct and indirect supply of precursor chemicals used by criminal organizations to produce illicit fentanyl. This classification was outlined in the Annual Threat Assessment (ATA) of the U.S. intelligence community, released on Tuesday.
Fentanyl Crisis in the U.S.
Fentanyl, a synthetic opioid, remains the deadliest drug trafficked into the United States. According to the report, more than 52,000 Americans lost their lives due to fentanyl-related overdoses in the 12-month period ending October 2024.
“These groups [transnational criminal organizations or TCOs] are often enabled, both directly and indirectly, by state actors, such as China and India, as sources of precursors and equipment for drug traffickers,” stated the report, published by the office of U.S. Director of National Intelligence (DNI) Tulsi Gabbard.
The report further emphasized that “China remains the primary source country for illicit fentanyl precursor chemicals and pill pressing equipment, followed by India.”
India’s Inclusion Marks a Policy Shift
For the first time, the U.S. has placed India on the same level as China regarding the supply of precursor chemicals linked to fentanyl production. In last year’s assessment, India was mentioned as one of several countries supplying chemicals to Mexican drug cartels but to a “lesser extent.” China, however, was explicitly identified as the primary supplier.
This shift in classification comes as Washington intensifies efforts to curb the fentanyl epidemic and tighten its grip on the global supply chain enabling drug cartels.
Trump’s Crackdown on Fentanyl Trafficking
The U.S. intelligence report aligns with President Donald Trump’s aggressive stance against opioid trafficking, which has become a key component of his administration’s foreign policy.
Earlier this month, Trump reiterated his commitment to eradicating fentanyl abuse, stating, “We will not rest until we have ended the fentanyl epidemic in America once and for all.”
On February 1, the Trump administration imposed an additional 10% tariff on China, citing its failure to curb fentanyl trafficking. The White House also levied 25% duties on Canada and Mexico, alleging inadequate border enforcement measures against drug smuggling.
Potential Trade Implications for India
In addition to targeting China, Trump has threatened reciprocal tariffs on multiple nations under his “Liberation Day” trade policy, set to take effect on April 2.
However, India is actively engaging in negotiations with Washington to fast-track a free trade agreement. This deal could potentially shield India from some of the proposed U.S. tariffs, offering an economic buffer as diplomatic discussions unfold.
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