US labels India, China as ‘State Actors’ in Fentanyl crisis as Trump threatens trade tariffs

This is the first time Washington has placed India on the same level as China in connection with the illicit fentanyl trade.

Amin Masoodi 27 March 2025 07:50

With just days before Donald Trump’s tariff retaliation takes effect, the US has officially named India and China as key enablers of fentanyl trafficking, marking a significant escalation in its crackdown on the opioid crisis.

A US intelligence report evaluating global security risks — accuses both nations of facilitating the supply of precursor chemicals and pill-making equipment used by drug traffickers. This is the first time Washington has placed India on the same level as China in connection with the illicit fentanyl trade.

According to the report, fentanyl and synthetic opioids remain the deadliest drugs smuggled into the US, responsible for over 52,000 deaths in the year ending October 2024. While Mexican cartels dominate fentanyl production and distribution, they depend on chemicals and equipment sourced from India and China, the report states.

“Non-state groups are often enabled, both directly and indirectly, by state actors such as China and India,” the assessment, released by U.S. Director of National Intelligence (DNI) Tulsi Gabbard’s office, noted. It highlighted China as the primary source of fentanyl precursors, with India as a growing secondary supplier.

The report’s findings follow a recent federal indictment in Washington, DC, where an India-based chemical firm and three of its executives were charged with illegally shipping fentanyl precursors. Two senior employees from a Hyderabad-based company were also arrested in New York last week.

Beyond drug trafficking, the assessment flagged global terror threats, warning that ISIS offshoots — including ISIS-Khorasan — continue to plot attacks against the West, while anti-India militant groups remain a concern due to historical ties with al-Qaeda.

Meanwhile, Trump’s administration is preparing to impose “Liberation Day” tariffs on multiple countries by April 2. India, however, is in talks with Washington to fast-track a free trade deal in hopes of mitigating the financial fallout.