WASHINGTON: In a dramatic day of tit-for-tat trade blows, US President Donald Trump escalated his tariff war with China while offering a temporary reprieve to the rest of the world.
Just hours after Beijing retaliated against the US by hiking tariffs on American goods to 84 per cent – up from 34 per cent – Trump struck back, announcing an even steeper tariff on Chinese imports: 125 per cent, effective immediately.
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA… is no longer sustainable,” Trump declared on TruthSocial.
But in a surprise twist, Trump also announced a 90-day pause on any additional tariffs above the standard 10 per cent for all other countries.
He claimed that over 75 nations had refrained from retaliating against the US, following what he called his “strong suggestion.”
“Based on their restraint,” Trump said, “I have authorised a 90-day PAUSE and a substantially lowered Reciprocal Tariff during this period.”
India treads carefully
India, which was hit with a 26 per cent tariff last week, is using the pause as breathing space. Ministry of External Affairs Spokesperson Randhir Jaiswal said talks are underway for a comprehensive, multi-sectoral trade deal.
“Reciprocal tariffs and discussions are ongoing between India and US trade teams… Both teams are in discussion and hopefully we can close it,” he said.
Indian markets, which took a hit after the initial tariff announcements, may see some relief in the short term as New Delhi strategises next steps.
Mixed signals
While the 90-day pause brings temporary relief for many countries, it also highlights growing uncertainty around the Trump administration’s trade playbook. The president had previously framed the tariffs as a necessary pain point, only to shift gears with the pause.
Asked if tariffs were permanent or a bargaining tool, Trump had said, “There can be permanent tariffs – and there can also be negotiations,” only deepening the ambiguity.
US Treasury Secretary Scott Bessent, however, insisted the moves were part of a master plan. “This was his strategy all along… you might even say that he goaded China into a bad position,” Bessent told AFP.
