GUWAHATI: In a surprise move, U.S. President Donald Trump on Wednesday announced a temporary 90-day halt on his recently imposed tariffs for all nations except China. The pause, which comes amid growing economic concerns, represents a dramatic shift from the White House’s hardline stance just a day earlier.
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According to Trump, more than 75 countries have negotiated without retaliating against the tariffs, prompting the suspension. During this period, a reduced reciprocal tariff of 10 per cent will apply, he stated. However, China is not included in the reprieve.
Instead, Trump declared a steep tariff hike on Chinese goods raising the rate from 104 per cent to a staggering 125 per cent. “Given China’s blatant disregard for global market fairness, the United States is increasing tariffs on Chinese imports to 125% effective immediately,” Trump wrote on Truth Social. “The era of exploiting America and other countries is over.”
The president added that while China appears eager to strike a deal, he believes President Xi Jinping is still unsure how to navigate negotiations. “They want a deal. They just don’t know quite how to do it… but they’ll get there,” he said.
Though Trump had resisted pressure from Republican lawmakers and business leaders to reverse the tariffs, the shift reportedly came after senior officials at the Treasury Department raised alarm over troubling signals from the bond market.
Media reported that Treasury Secretary Scott Bessent and White House economic aides highlighted the accelerating selloff of U.S. Treasury bonds as a red flag. Trump, addressing reporters, hinted that the decision was more instinctual than strategic. “The bond market looked a little shaky last night. We didn’t have lawyers draft this – it came from the heart,” he remarked. “People were panicking a bit… You have to be flexible.”
Wall Street reacted with euphoria to the unexpected announcement. The Dow Jones Industrial Average soared by approximately 2,500 points, marking an 8% jump. The Nasdaq posted its best day in 24 years, leaping 12.2%, while the S&P 500 climbed 6% to close at 5,281.44.
Commodities also responded positively. Oil prices rose over 4%, and the U.S. dollar strengthened following the news.
India, which had been impacted by a 26 per cent reciprocal tariff on its exports to the U.S., may now catch a break. The 90-day pause gives New Delhi more time to negotiate a favourable resolution.
Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs, confirmed ongoing talks. “We are in active discussions with U.S. trade teams to finalize a balanced and comprehensive bilateral trade agreement,” he said. “India and the United States share strong economic and trade ties, and we hope to deepen them further.”
The temporary pause now gives several countries, including India, a window of opportunity to recalibrate trade terms with Washington — even as tensions with China continue to escalate.
