U.S. President Donald Trump has announced a 90-day pause and a 10% reduction in reciprocal tariffs for countries, including India, affected by the increased U.S. tariffs that came into effect on Wednesday.
However, the trade war with China has intensified, with tariffs on Chinese goods rising to 125%.
“I have authorized a 90 day PAUSE and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump said on his Truth Social network.
He took the decision after more than 75 countries had reached out to negotiate and did not retaliate against the United States.
“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, 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,” he said.
Trump also announced that, “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.”
Beijing has retaliated to the US tariffs by announcing it would raise its own tariffs on American goods from 34% to 84% from Thursday.
Trump accused China of still “ripping off” his country, and other countries, and stated in the near future, China will realize that it is “no longer sustainable or acceptable.”
Last week, Trump announced a 26% reciprocal tariff on India, citing the country’s “very, very tough” stance on American imports.
Responding to the pause, Union Minister of Commerce and Industry Piyush Goyal said , “India is very efficiently handling the whole thing. PM Narendra Modi and President Trump had already come to a decision in February that they would sign a bilateral trade agreement to boost mutual relations in order to ease trade between the two nations, which will take trade to $500 billion, will generate more employment opportunities, and strengthen the nation’s economy… Our talks are progressing well.”
“India’s economic backbone is strong enough to handle global fluctuations, and this pause proves our approach of restraint was wise,” said Amit Shah, Union Home Minister.
When the tariffs were announced on April 2, 2025, targeting 185 countries with rates ranging from 10% to over 100% , U.S. stock markets experienced sharp declines, with sell-offs sparking trillions in losses across the world.
China’s foreign ministry spokesman Lin Jian said on Wednesday the US “continues to impose tariffs on China in an abusive manner”.
He said China opposes such “bullying practices” and the US must show “an attitude of equality, mutual respect, and reciprocity” if it hopes to resolve issues through negotiation.
US shares rocketed with the S&P 500 soaring 7% in afternoon trading. It later closed the day’s trading up 9.5%, while the Dow Jones surged by 7.8%.
US Treasury Secretary Scott Bessent insisted the change of policy had not been influenced by the global falls.
Meanwhile, critics alleged that the sudden policy change amounts to market manipulation.
The allegations stem from the post of president on Truth Social made before the tariff pause, stating “THIS IS A GREAT TIME TO BUY!!! DJT,” as the policy shift caused markets to surge dramatically.
Senator Adam Schiff announced he is formally opening an investigation to see if members of Donald Trump’s Administration illegally profited off of today’s stock market shenanigans.
“Who knew in advance that the president was gonna once again flip flop on tariffs? And are people cashing in?, he said.
“How is this not market manipulation?” Representative Mike Levin, Democrat of California, said on social media, referring to action that is potentially illegal.
“Everyday investors who sell in fear take the hit. Wealthy insiders walk away with the profits. This is NOT OK!,” he said.
“If you’re a Trump supporter and you did what he said and you bought, then you did great. On the other hand, if you’re a retiree or a senior or somebody in the middle class over the last few days that didn’t have the tolerance for risk and you decided to sell, you got screwed.”
Journalist Ron Filipkowsk took to X, stating, “Trump tells his followers to buy stock in the morning, minutes after the market opens, then announces he is pausing tariffs 4 hours later.”
