Capping a day dominated by a back-and-forth between the US and China, Donald Trump on Wednesday made two major announcements on tariffs, giving all other countries a breather but doubling down on his tough stance on Beijing.
After the US raised tariffs on China to 104%, Beijing retaliated, announcing that it will impose a levy of 84% on US imports, up from 34%, marking a significant escalation of the tariff trade war between the countries.
The US counter-strike was swift, and brutal.
Taking to his social media platform TruthSocial, the US president announced that he was raising tariffs on China even further- to 125% – effective immediately.
“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.
For other countries, though, the billionaire also appeared to apply a salve on tariff wounds, announcing a 90-day pause on tariffs over the baseline, universal rate of 10%.
Asserting that over 75 countries had tried to negotiate with the US and not retaliated to the tariffs in “any way, shape or form”, Trump said he has authorised a 90-day pause, also effective immediately. The lack of retaliation, he insisted, was a result of his “strong suggestion”.
“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 (United States Trade Representative), 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%, also effective immediately. Thank you for your attention to this matter!” the US president wrote.
NEW TRUTH SOCIAL FROM PRESIDENT TRUMP:
🇨🇳125% TARIFF ON CHINA
🌎90-DAY PAUSE & LOWERED 10% RECIPROCAL TARIFF FOR OTHER COUNTRIES🚨EFFECTIVE IMMEDIATELY pic.twitter.com/Gt5Bd6276m
— The White House (@WhiteHouse) April 9, 2025
India Impact
India has taken a cautious approach to Trump’s tariffs, despite a 26% additional levy announced last week, and emphasised that a bilateral trade deal with the US is in the works.
“On the third, we had a detailed press release issued by the Ministry of Commerce, in which India’s position was made clear. We are studying the implications of the tariffs that have been announced,” Ministry of External Affairs Spokesperson Randhir Jaiswal said on Wednesday.
“Reciprocal tariffs and discussions are ongoing between India and US Trade teams for an expeditious conclusion of a mutually beneficial multi-sectoral bilateral trade agreement. India values its comprehensive global strategic partnership with the US and is committed to working closely with it… Both teams are in discussion and hopefully we can close it (the agreement),” he added.
Indian markets, which have plunged after the tariffs announcement, are likely to get a breather and the pause will also give New Delhi more time to work on the deal with the US as well as figure out the best way to deal with the levies if and when they are enforced again.
