Washington: US President Donald Trump Wednesday announced a lower rate of 10 per cent for 90 days in reciprocal tariffs for trading partner countries that have not retaliated with higher levies on American goods — such as India — and further hiked the levy on China to 125 per cent for hitting back.
India has not retaliated to the 26 per cent levy by Trump and has engaged the administration in negotiations, like nearly 70 other countries.
Indian External Affairs Minister S. Jaishankar and Secretary of State Marco Rubio Monday discussed “early conclusion” of a bilateral trade agreement.
The pause and the additional tariff on China came after Beijing hit back to Trump’s second round of additional 50 per cent hike — over the 34 per cent announced earlier, which had taken the total levies to 104 per cent. China retaliated with additional tariff taking up its levy on imports from America to 84 per cent.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 per cent, effective immediately,” President Trump wrote on Truth Social.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately,” he said further.
US markets have been in turmoil since the reciprocal rates went into effect and calls had emerged from some key Wall Street influencers such as Bill Ackman for a 90-day pause.
Trump has also faced some push-back to the tariff from a key adviser, Elon Musk who has criticized them and engaged in a public spat with Peter Navarro, a key trade adviser to the president.
