Daijiworld Media Network – Washington
Washington, Apr 10: In a major trade development with global implications, US President Donald Trump on Wednesday announced a 90-day tariff reprieve for countries that have refrained from retaliating against American import levies — with India prominently benefiting from the move.
As part of the revised strategy, the US will impose a lowered 10 per cent reciprocal tariff for the next three months on countries that have opted for dialogue over retaliation — a group that includes India. In stark contrast, Trump ordered an aggressive hike in tariffs on Chinese goods, raising the levy to a striking 125 per cent following Beijing’s countermeasures to earlier US hikes.
India, which had been facing a 26 per cent levy imposed earlier by the Trump administration, chose not to retaliate and instead opted for diplomatic engagement. External affairs minister S Jaishankar and US Secretary of State Marco Rubio held talks on Monday focused on the ‘early conclusion’ of a bilateral trade agreement.
The White House’s toughened stance on China comes after Beijing responded to Trump’s earlier tariff increases — 34 per cent initially, followed by another 50 per cent — by raising its own tariffs to 84 per cent on US imports. The escalating tension prompted Trump to announce the 125 per cent tariff on China, citing what he called “a lack of respect” for global trade norms.
“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,” Trump posted on Truth Social.
He added, “Conversely… more than 75 countries… have not, at my strong suggestion, retaliated… I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately.”
The announcement follows growing unrest in US markets since the original reciprocal tariffs were introduced. Influential voices on Wall Street, including hedge fund manager Bill Ackman, had urged a temporary pause to stabilize the markets.
Trump has also faced internal dissent on his tariff policy. Tesla CEO Elon Musk openly criticized the approach and clashed publicly with Peter Navarro, one of Trump’s key trade advisers.
The 90-day pause offers a window of opportunity for diplomatic trade resolutions, with India emerging as a constructive player amid global tensions.