Trump Reduces Tariffs for Non-Retaliating Nations like India
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Synopsis
US President Donald Trump has lowered tariffs to 10% for 90 days for countries like India, which have not retaliated, while raising tariffs on China to 125% for their counteractions. This decision follows negotiations and discussions involving multiple nations, aiming to stabilize trade relations amid ongoing market volatility.
Key Takeaways
- 10 percent tariff for non-retaliating countries
- Increased tariff on China to 125 percent
- Negotiations ongoing with India and 70 other nations
- Trump emphasizes the need for trade respect
- Market volatility prompts calls for a 90-day pause
Washington, April 10 (NationPress) US President Donald Trump declared on Wednesday a reduced tariff rate of 10 percent for a duration of 90 days for trading partners that have refrained from imposing retaliatory tariffs on American products — including India — while simultaneously increasing the tariff on China to 125 percent due to their counteractions.
India has not responded to the 26 percent tariff imposed by Trump and has been involved in discussions with the administration, similar to nearly 70 other nations.
Indian External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio on Monday deliberated on the “early conclusion” of a bilateral trade agreement.
The suspension and the heightened tariff on China followed Beijing's response to Trump's second wave of a 50 percent increase — on top of the previously announced 34 percent, pushing the total tariffs to 104 percent. China retaliated by raising its tariff on imports from America to 84 percent.
“Due to the lack of respect China has displayed towards the World’s Markets, I am raising the Tariff charged to China by the United States of America to 125 percent, effective immediately,” President Trump stated on Truth Social.
“Conversely, given that more than 75 countries have reached out to US representatives, including the Departments of Commerce, Treasury, and the USTR, to negotiate resolutions on trade-related subjects and that these countries have not retaliated against the United States at my strong suggestion, I have authorized a 90-day pause and a significantly reduced Reciprocal Tariff of 10 percent during this timeframe, also effective immediately,” he added.
US markets have experienced volatility since the reciprocal rates were established, with calls for a 90-day pause coming from influential figures on Wall Street, including Bill Ackman.
Trump has also encountered resistance regarding the tariffs from key advisor Elon Musk, who has openly criticized them, engaging in a public disagreement with Peter Navarro, a principal trade advisor to the President.
