Donald Trump’s Tariff Strategy: 90-Day Pause for All Except China

In an unexpected move, a three-month pause on reciprocal tariffs has been announced, sending waves across global markets. The only exception? This pause does not apply to China, which continues to face steep duties. The decision marks a shift from the tough tariff approach that had defined the trade policy in recent months. 

China Still Faces High Tariffs 

While most countries will now see tariffs return to a universal rate of 10%, China remains an exception. The tariff on Chinese imports has been raised to 125% from the earlier 104%. As per CNN Business reports, the message was clear: unless China cooperates, the pressure will not ease. 

Trade Relief for India 

Following the 26% customised reciprocal tariff imposed by the US on Indian goods, Indian markets saw a noticeable dip. However, the recent 90-day pause in tariff hikes has offered some breathing room. This pause gives India more time to strengthen its trade talks with the US and work toward a favourable deal. 

A spokesperson from the Ministry of External Affairs shared that discussions are ongoing between Indian and US trade teams. Both sides are aiming to finalise a balanced, multi-sectoral trade agreement that benefits both countries. 

Behind the Scenes of the Decision 

According to CNN Business, the decision to pause was influenced by internal discussions and rising pressure from stakeholders. The US administration acknowledged that the move was strategic and aimed at gaining leverage in ongoing talks with trade partners. Officials who were part of the announcement said it was crafted early in the morning, reflecting a shift in tone and strategy. 

Tensions Continue with China 

The sharp tariff increase on China followed retaliatory measures from Beijing. China recently imposed new duties of 84% on US goods, escalating tensions. As per CNN Business, some economists believe this tension is unlikely to ease soon. China is now more self-reliant and has public support for resisting US pressure. 

What Lies Ahead? 

Industry leaders welcome the pause, but uncertainty looms over what follows the 90-day break, especially for sectors like steel, aluminium, and automobiles affected by the ongoing Trump tariff strategy.  

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