Synopsis
On April 10, President Trump stated that countries failing to reach trade agreements with the US by July 9 will face reinstated tariffs, increasing India's rate back to 26%. This follows a 90-day pause where tariffs were lowered to 10%. Notably, China faces higher tariffs due to its retaliatory actions.Key Takeaways
- Tariffs reinstated for countries not reaching agreements by July 9.
- India's tariff rate will increase from 10% to 26%.
- Over 75 countries are negotiating with the US.
- China faces a 125% tariff due to retaliatory measures.
- Trump emphasizes the need for flexibility in negotiations.
Washington, April 10 (NationPress) US President Donald Trump announced on Thursday that if trading partner nations fail to strike a deal with the US by July 9, the end date of a 90-day tariff pause, goods from those countries will face tariffs at previously stated reciprocal rates.
For India, this means tariffs will revert to 26 percent from the adjusted 10 percent. Other nations will also experience similar adjustments if they choose negotiations with the US rather than retaliating with higher tariffs on American exports, as seen with China, which currently faces a 125 percent tariff.
“If we can't finalize a deal that suits both parties, we will revert to previous rates,” Trump stated during a live-streamed cabinet meeting.
When asked about the possibility of extending the pause, he replied: “We’ll see what happens at that time.”
The president had previously announced a temporary reduction of tariffs to 10 percent on imports from countries that refrained from imposing retaliatory tariffs on American products, affecting over 75 nations seeking negotiations, including India, which is currently exploring a Bilateral Trade Agreement with the US.
China stands out as the major exception to Trump's policy shift. He has escalated tariffs on Chinese imports to 125 percent, following China's retaliatory tariff of 84 percent on American goods.
The details were formalized in an executive order issued on Wednesday evening. Trump first revealed the tariff pause and adjustments on Truth Social, coinciding with market turmoil over the tariffs, which triggered a sell-off in treasury bonds. However, indices rebounded, with the tech-heavy Nasdaq hitting a two-decade high shortly after.
“I thought people were overreacting,” Trump remarked when questioned about the abrupt policy change that surprised even his officials. “They were getting a bit anxious.”
“Flexibility is necessary,” he added when pressed further.
While Trump indicated a willingness to negotiate when introducing the “reciprocal” tariffs, his senior aides had maintained that these tariffs were not negotiable. Nonetheless, the president moved towards negotiations and made his decision on Wednesday morning.
“Given China's lack of respect for global markets, I am raising the tariff on Chinese goods to 125 percent, effective immediately,” Trump posted on Truth Social.
“In contrast, since more than 75 countries have reached out to US representatives, including the Departments of Commerce, Treasury, and the USTR, to negotiate solutions regarding trade barriers, tariffs, currency manipulation, and other non-monetary tariffs, and have not retaliated against the US at my strong suggestion, I am authorizing a 90-day pause and significantly reducing the reciprocal tariff during this period to 10 percent, effective immediately,” he added further.
