In a significant turn of events in the current global trade tensions, US President Donald Trump on Wednesday declared a 90-day delay in further tariffs on all nations — with the exception of China. The action follows a day of heightened trade retaliation between Washington and Beijing, with both nations substantially raising duties on each other’s imports.
Announcing the move through his social media channel Truth Social, Trump said that more than 75 nations had entered into negotiations with US representatives, including the Departments of Commerce, Treasury, and USTR (United States Trade Representative), and had held back on retaliatory action.
“Due to the fact that these nations have not retaliated in any form, shape, or manner — at my strong urging — I have directed a 90-day PAUSE, and a significantly reduced Reciprocal Tariff during this time, of 10%, effective immediately,” Trump tweeted.
But China did not get a reprieve, did China. Relations between the two biggest economies got worse than ever. The US did a tariff hike on Chinese products for 104%, and Beijing retaliated by imposing an 84% duty on US imports, from 34%, in one of the toughest retaliations since years went by.
As a response, Trump declared an even more stringent measure — raising US tariffs on China to a whopping 125%, right away. “At some point, hopefully in the near future, China will realise that the days of ripping off the USA and other countries is no longer sustainable or acceptable,” Trump wrote.
India has adopted a careful and calibrated response. Though hit with a 26% extra duty last week, the Indian government is pursuing bilateral talks.
“India cherishes its global strategic comprehensive partnership with the US and remains committed to close cooperation with it,” MEA spokesperson Randhir Jaiswal stated. He confirmed that talks on a multi-sectoral bilateral trade agreement are on and moving forward.
Indian markets, which had witnessed volatility in the aftermath of tariff increases, are likely to get a breather from the 90-day hiatus. This gives New Delhi time to realign its response to trade and negotiate concessions through diplomacy.
The hiatus might be short-term in nature, but the message has been clearly conveyed: Trump’s trade policy remains in flux — tough on foes, soft on friends — and the world is watching intently.
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