Trump slashes tariffs on countries like India for not retaliating
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Washington: US President Donald Trump announced a 10% tariff on imports from countries that haven't retaliated with higher levies on American goods, like India. However, countries that have pushed back, such as China, will face higher tariffs of up to 125%.
India has chosen not to retaliate against the 26% tariff imposed by US President Donald Trump, instead opting to engage in negotiations with the US administration. This approach is shared by nearly 70 other countries that have also refrained from retaliating against the US tariffs.
Indian External Affairs Minister S. Jaishankar and Secretary of State Marco Rubio on Monday discussed the “early conclusion” of a bilateral trade agreement.
The pause and the additional tariff on China came after Beijing hit back at Trump's second round of an additional 50 per cent hike – over the 34 per cent announced earlier, which had taken the total levies to 104 per cent. China retaliated with an additional tariff, taking up its levy on imports from America to 84 per cent.
"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 per cent, effective immediately,” President Trump wrote on Truth Social.
“Conversely, and 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, I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately,” he said further.
US markets have been in turmoil since the reciprocal rates went into effect and calls had emerged from some key Wall Street influencers, such as Bill Ackman, for a 90-day pause.
Trump has also faced some pushback to the tariff from a key adviser, Elon Musk, who has criticised them and engaged in a public spat with Peter Navarro, a key trade adviser to the president.
(inputs from IANS)
