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This marks the first instance in which Washington has placed New Delhi on the same footing as Beijing regarding the supply of precursor chemicals used by drug cartels to produce opioids such as fentanyl.
With just one week remaining before the implementation of the Trump administration’s tit-for-tat tariffs, the United States has officially labeled both India and China as “state actors” involved in the direct and indirect supply of precursor chemicals and equipment that drug traffickers use, particularly in the production of illicit fentanyl. The announcement was made in the 2025 Annual Threat Assessment (ATA), which evaluates global threats to U.S. interests. Released on Tuesday, the report highlights the increasingly significant role that both nations play in fueling the ongoing fentanyl crisis in the U.S.
According to the report, fentanyl and other synthetic opioids continue to be the deadliest drugs trafficked into the U.S., causing over 52,000 deaths in the 12-month period ending in October 2024. The Trump administration, in its efforts to combat the opioid crisis, has stepped up its crackdown on fentanyl trafficking, taking a hard stance against countries perceived to be enabling the illegal drug trade. While the U.S. has previously criticized China for its role in the flow of fentanyl-related substances, this marks the first time Washington has placed India on the same level as China regarding the supply of precursor chemicals used by drug cartels to manufacture fentanyl and other synthetic opioids.
The ATA assessment points to the critical role of state actors like China and India, alongside transnational criminal organizations (TCOs) such as Mexico’s Sinaloa Cartel and the Jalisco New Generation Cartel. These cartels remain dominant in the production and distribution of illicit drugs, but they are heavily reliant on precursor chemicals and equipment sourced from countries like China and India. “Non-state groups are often enabled, both directly and indirectly, by state actors,” the report notes, explaining that China continues to be the primary source of illicit fentanyl precursor chemicals, followed by India.
In recent developments, a federal case in Washington, D.C. further underscored the growing concern over India’s involvement. An India-based State Actors chemical manufacturing company and three of its executives were charged with illegally importing fentanyl precursors into the U.S.
Additionally, two senior employees from a Hyderabad-based company were arrested in New York City last week as part of the investigation. These incidents highlight the ongoing issue of international drug trafficking and the role that certain foreign nations play in the opioid crisis.
The assessment’s inclusion of India alongside China is a significant shift in U.S. policy, as it reflects the expanding role of Indian-based chemical manufacturers in supplying precursor chemicals used by drug traffickers. Previously, China was the central focus of U.S. scrutiny in this area. However, as India has become a more prominent source of these chemicals, the U.S. has broadened its target to include both nations.
Beyond the issue of drug trafficking, the ATA also addresses other global threats. Notably, it highlighted the continuing threat posed by transnational Islamic extremists, particularly ISIS-Khorasan (ISIS-K), whose factions remain committed to targeting the West. The report warned that these groups will likely continue their attacks via online outreach, propaganda, and exploitation of vulnerable travel routes. The report also mentioned the increasing presence of the Tehrik-e-Taliban Pakistan (TTP) and the ongoing threat posed by anti-India groups like Lashkar-e-Tayyiba, whose links to al-Qaida remain a concern for U.S. counterterrorism efforts.
The growing recognition of India’s role in fentanyl trafficking signals an important shift in U.S. policy, as the U.S. looks to address the global supply chain that contributes to the opioid epidemic. While both China and India State Actors are major players in the global economy, their involvement in the illicit drug trade has prompted the U.S. to take more aggressive action. With the imposition of tariffs looming, the Trump administration is signaling that it will hold these countries accountable for their role in the fentanyl crisis and the broader issue of global drug trafficking.
As the situation develops, the U.S. is likely to continue its push for greater international cooperation to combat the opioid crisis, urging countries like China and India to take State Actors more decisive action in addressing the flow of precursor chemicals and equipment used in the production of illicit drugs. The next steps in this ongoing struggle will undoubtedly have significant geopolitical and economic implications, as the U.S. works to secure its borders against the deadly tide of fentanyl flooding its streets.
