Donald Trump announces 90-day pause on tariffs for all countries except for India

After the US raised tariffs on China to 104 percent, Beijing retaliated, announcing that it would impose a levy of 84 percent on US imports, up from 34 percent, marking a significant escalation of the tariff trade war between the countries.  

The US counter strike was swift, with Trump announcing that he was raising tariffs on China even further- to 125 percent - effective immediately.

"At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable," he posted on Truth Social.

For other countries, though, the billionaire also appeared to apply a salve on tariff wounds, announcing a 90-day pause on tariffs over the baseline, universal rate of 10 percent.

Stating that over 75 countries had attempted to negotiate with the US and not retaliated to the tariffs in "any way, shape or form", Trump said he has authorised a 90-day pause, which is also effective immediately.

The lack of retaliation by the countries, he insisted, was a result of his "strong suggestion".

"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 (United States Trade Representative), 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. Thank you for your attention to this matter!" the US president wrote.

China implemented the move just hours after the USA officially imposed a massive 104 per cent tariff on Chinese imports.

The Chinese tariff declaration will further escalate the trade tension sparked by US President Donald Trump.

India impact

Taking a cautious approach to Trump's tariffs, which is an additional 26 percent levy announced last week, India emphasised that a bilateral trade deal with the US is in progress.

"On the third, we had a detailed press release issued by the Ministry of Commerce, in which India's position was made clear. We are studying the implications of the tariffs that have been announced," Ministry of External Affairs Spokesperson Randhir Jaiswal said on Wednesday.

"Reciprocal tariffs and discussions are ongoing between India and US Trade teams for an expeditious conclusion of a mutually beneficial multi-sectoral bilateral trade agreement. India values its comprehensive global strategic partnership with the US and is committed to working closely with it... Both teams are in discussion and hopefully we can close it (the agreement)," he added.

Indian markets, which have plummeted after the tariffs announcement, are likely to get a breather with this pause.

It will also give New Delhi more time to work on the deal with the US, as well as figure out the best way to deal with the levies if and when they are enforced again.