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Informist, Wednesday, Apr. 9, 2025

 

NEW DELHI - In a major relief to countries that did not "retaliate" against the reciprocal tariffs imposed by the US, President Donald Trump on Wednesday declared a 90-day pause and dropped the rate to 10% during this period. Trump, however, excluded China from the list and raised tariffs on Beijing to 125% "with immediate effect" due to the "lack of respect that China has shown to the World's Markets." 

 

Trump said in a social media post that more than 75 countries had called the representatives of the US to negotiate on tariffs. "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%, also effective immediately," Trump said on Truth Social. 

 

While increasing tariffs on Beijing, Trump hoped that "at some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable."  

 

Following the announcement, US stock markets recorded substantial single-day gains. The S&P 500 experienced a remarkable surge of 7%, potentially marking its largest single-day gain in five years. The Dow Jones Industrial Average also soared 2331 points, which translates to a substantial 6.1% increase. This marks the biggest gain since 2020. Additionally, the Nasdaq Composite witnessed a jump of 8.8%.

 

On Apr. 2, Trump announced the discounted reciprocal tariffs on countries across the world to address what he perceived as unfair trade practices by other countries and to reduce the US trade deficit. He imposed a 26% duty on goods imported from India, which came into effect on Wednesday. Trump also imposed tariffs on various other countries, including China (32%), the European Union (20%), Vietnam (46%), Japan (24%), the UK (10%), Indonesia (32%), Taiwan (32%) among others. 

 

Trump underlined that the decision aimed to encourage domestic manufacturing and protect American industries. He asserted that the US had been disadvantaged for decades due to foreign trade policies such as high tariffs, currency manipulation, and non-tariff barriers.

 

Meanwhile, China responded with retaliatory tariffs of 34% on US goods, which irked Trump and he increased the duties on Chinese goods to 104%. Refusing to bend down, China on Wednesday increased the tariffs on the US to 84%. Criticising US tariffs, Beijing said that the US practice is inconsistent with international trade rules, it seriously damages China's legitimate rights and interests, and is a typical unilateral bullying practice.  End

 

Reported by Kuldeep Singh

Edited by Deepshikha Bhardwaj

 

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