In a significant shift in U.S. trade policy, President Donald Trump announced a 90-day pause on increased tariffs for over 75 countries that refrained from retaliating against earlier U.S. import duties. The move marks a strategic softening in response to market pressures and ongoing global trade tensions—particularly with China.

• Tariff Reprieve for Over 75 Nations:
  • A 90-day pause on higher tariffs announced for countries that have not retaliated against U.S. import levies.
  • These countries will face a reduced 10% reciprocal tariff during this period.
  • India is among the key beneficiaries, having opted for diplomatic dialogue over retaliation.
• India’s Position:
  • Faced a previous 26% tariff under U.S. policy.
  • Chose not to impose counter-tariffs, instead engaging diplomatically.
  • High-level talks held between India’s External Affairs Minister S. Jaishankar and U.S. Secretary of State Marco Rubio aimed at a bilateral trade deal.
• Escalation with China:
  • China responded to initial U.S. tariffs (20%, 34%, then 50%) with its own 84% tariff on American goods.
  • In response, Trump announced a new 125% tariff on Chinese imports.
  • Trump cited China’s “lack of respect” for global trade norms as justification.
• Market & Business Reaction:
  • The pause in tariffs led to a strong rally in global stock markets, adding $1.5 trillion in value.
  • Influential investors like Bill Ackman supported the move.
  • Internal dissent continued, with Tesla CEO Elon Musk