Trump pauses tariffs for 90 days on cooperative countries, slams China with 125% tariff

US President Donald Trump on Wednesday (local time) announced a 90-day pause in reciprocal tariffs for US trading partners who have not retaliated against his previous tariff hikes — a list that includes India and nearly 70 other countries. The decision comes amid growing global trade tensions and domestic pressure from Wall Street and key economic advisers.

However, the most striking development is Trump’s aggressive escalation against China, as he raised tariffs from 104% to a massive 125% on Chinese imports. This decision follows China’s countermeasures, which lifted tariffs on American goods to 84%, in retaliation to Trump’s earlier rounds of hikes.

“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,” Trump posted on Truth Social.

India, notably, did not retaliate after Trump slapped a 26% tariff on Indian goods. Instead, it has chosen the diplomatic route, joining other nations in negotiations. Just days before the announcement, Indian External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio held talks in Washington, aiming for the “early conclusion” of a bilateral trade agreement.

This cooperative stance appears to have paid off, as India is among the countries now enjoying the 90-day tariff pause and a potential reduction in levies to just 10% during this period.

“More than 75 countries have called representatives of the United States… to negotiate a solution… and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States,” Trump said in his announcement.

China, however, is being treated differently. The country’s decision to strike back after Trump's second wave of tariff hikes — an additional 50% on top of a previous 34% — did not sit well with the President. Beijing’s cumulative 84% tariff on US goods was labeled an act of defiance, prompting the US to hike the rate to 125%, effective immediately.

This marks one of the most severe tariff levels ever imposed by the United States on any major trading partner, and could significantly impact global trade flows and supply chains.

While Trump announced the reduced 10% tariff rate during the pause period, it remains unclear whether that will replace or reduce the current tariffs already in place for countries like India, or if it only applies to new or pending tariffs. Further guidance is expected from the US Trade Representative’s office.

US markets, already rattled by tariff uncertainty, responded with renewed volatility following the announcement. Influential voices like billionaire investor Bill Ackman had publicly called for a cooling-off period, warning of negative impacts on inflation and investor confidence.

Trump has also faced pushback from within his advisory circle. Notably, Tesla and SpaceX CEO Elon Musk criticised the tariffs, clashing with White House trade advisor Peter Navarro in a rare public dispute.

(With inputs from syndicated feed)