In a pivotal move reshaping global trade dynamics, U.S. President Donald Trump on Wednesday declared a 90-day tariff relief for nations that have avoided retaliatory tariffs, with India emerging as a key beneficiary.
Under this new approach, the U.S. will implement a reduced 10% reciprocal tariff for the next three months on countries choosing diplomatic dialogue over trade retaliation. This shift sharply contrasts with Trump’s latest directive targeting China, which now faces a steep 125% import tariff, following its countermeasures to previous U.S. hikes.
India, previously subjected to a 26% levy, refrained from counter-tariffs, opting instead for strategic negotiations. Recent discussions between External Affairs Minister S. Jaishankar and U.S. Secretary of State Marco Rubio centered on fast-tracking a bilateral trade deal, reflecting India’s commitment to constructive diplomacy.
Trump, addressing the decision on Truth Social, criticized China for showing “a lack of respect” to global trade norms. He praised over 75 nations for honoring his request to hold back on retaliations, rewarding them with a tariff pause and lower duties.
The move comes amid mounting pressure from U.S. markets, with Wall Street figures like Bill Ackman calling for a cooldown, and internal dissent from business leaders such as Elon Musk, who openly challenged the tariff stance.
This 90-day window opens doors for meaningful negotiations, positioning India as a key diplomatic actor in an increasingly polarized trade landscape.
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