US President Trump Suspends Tariffs on Global Trade for 90 Days, China Still Targeted

Washington, United States:In a surprising move, US President Donald Trump announced a 90-day pause on tariffs for all countries, except China, in an attempt to address concerns raised by both fellow Republicans and business executives. The pause, which came into effect immediately, will see a significantly reduced reciprocal tariff of just 10 percent for countries other than China. This development marks a dramatic shift in the administration's trade policy, one that had previously been dominated by the implementation of sweeping tariffs aimed at rectifying alleged trade imbalances.

Trump's original tariff policy had seen over 75 countries negotiate with the United States and refrain from retaliatory actions, contributing to the pause. However, China remains in the spotlight, with Trump announcing an immediate increase in tariffs on Chinese goods to 125 percent, up from the previously stated 104 percent. Trump justified the hike, citing China's lack of respect for global markets and its approach to trade.

"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%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries is no longer sustainable or acceptable," Trump stated on his social media platform, Truth Social. He added, “China wants to make a deal. They just don’t know how quite to go about it… President Xi Jinping is a proud man. They don’t know quite how to go about it, but they’ll figure it out.”

The 90-day tariff pause came after growing pressure from various sectors. Fellow Republicans, along with business executives, had been urging Trump to reconsider the tariffs, fearing a global trade war that could precipitate a market meltdown and potentially lead to a global recession. Despite initial resistance, Trump’s stance softened after discussions with US Treasury Secretary Scott Bessent and other White House economic officials, who raised alarms over the accelerating selloff in the US Treasury market.

Trump's decision to pause the tariffs was less a strategic shift and more an impulsive reaction to growing concerns within the financial markets. Speaking to reporters, Trump acknowledged the volatility in the bond market and explained the decision, saying, "The bond market is very tricky, I was watching it. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy. We didn’t have access to lawyers, or it was just wrote up. We wrote it up from our hearts, right? It was written from the heart, and I think it was well written too, but it was written from the heart."

US Stock Market Reacts Positively

The announcement triggered an immediate rally on Wall Street. Stocks surged across major indices, with the Dow Jones Industrial Average jumping over 2,500 points, gaining nearly 8 percent on the day. The tech-heavy Nasdaq saw a remarkable 12.2 percent rise, marking its best day in 24 years, while the S&P 500 climbed 6 percent to 5,281.44 points. Additionally, oil prices rose more than 4 percent, and the US dollar strengthened.

Impact on India

For India, the pause in tariffs is seen as a potential relief. The Indian markets, which had been hit hard by Trump’s imposition of a 26 percent reciprocal tariff on Indian imports, are expected to receive a breather. With the 90-day pause in place, New Delhi now has more time to negotiate a favorable trade deal with the US.

Indian Ministry of External Affairs Spokesperson Randhir Jaiswal confirmed that talks between India and the US on a bilateral trade agreement are ongoing. "India and the United States are very strong partners when it comes to trade relations, economic relations, investment relations, commercial relations, and we hope that these relations will continue to foster and deepen," he said. He also added that the two nations are working towards an expeditious conclusion of a mutually beneficial multi-sectoral trade agreement.

As the situation unfolds, the 90-day pause offers an unexpected opportunity for countries, including India, to reassess trade relations with the US while Trump maintains his firm stance on China.