Trump Suspends Tariffs on Non-Retaliatory Nations, Increases China Tariff to 125%
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Synopsis
On April 10, US President Donald Trump announced a 90-day halt on reciprocal tariffs for countries like India that have not retaliated against US tariffs, while increasing the tariff on China to 125% for its counteractions.
Key Takeaways
- Trump announced a 90-day pause on tariffs for non-retaliatory countries.
- India remains engaged in trade negotiations with the US.
- China's tariffs on US goods have increased significantly.
- Market instability has prompted calls for tariff adjustments.
- Key advisers express differing opinions on tariff effectiveness.
Washington, April 10 (NationPress) US President Donald Trump declared a 90-day suspension of reciprocal tariffs for countries that have not responded with higher taxes on US products — including India — while simultaneously raising tariffs on China to 125% for its retaliatory actions.
India has refrained from retaliating against Trump's 26% tariff and has been involved in discussions with the administration, alongside approximately 70 other nations. Indian External Affairs Minister S. Jaishankar and Secretary of State Marco Rubio discussed the “early conclusion” of a bilateral trade agreement on Monday.
The announcement of the pause and the increased tariff on China followed China's counteraction to Trump's second round of tariffs, which included an additional 50% increase on top of the previously set 34%, culminating in a total tariff of 104%. In response, China raised its tariffs on imports from the US to 84%.
“Considering the lack of respect that China has demonstrated towards global markets, I am elevating the tariff imposed on China by the United States to 125%, effective immediately,” President Trump stated on Truth Social.
“In contrast, given that over 75 countries have reached out to US representatives, including those from the Departments of Commerce, Treasury, and the USTR, seeking negotiations concerning trade issues, and that these nations have not retaliated in any form at my strong recommendation, I am instituting a 90-day PAUSE and a significantly reduced reciprocal tariff of 10% during this timeframe, effective immediately,” he added.
It remains unclear if goods from these nations will be subject to the lower 10% tariff during the 90-day pause or if they will be charged the previously set rates.
The US markets have faced upheaval since the implementation of reciprocal rates, prompting calls from influential Wall Street figures such as Bill Ackman for a 90-day hiatus.
Trump has also encountered opposition to the tariffs from key advisers like Elon Musk, who has publicly criticized them and engaged in a dispute with Peter Navarro, an important trade adviser to the President.
