On April 9, 2025, US President Donald Trump announced a 90-day pause on tariffs for all countries except China, surprising many after days of strong rhetoric. Trump cited non-retaliation from over 75 countries as the reason for the pause, and during this period, a reduced 10% reciprocal tariff will apply. However, tariffs on China were hiked to 125%, reflecting ongoing tensions.
The pause came amid internal concerns, particularly from the US Treasury Department, about a selloff in the bond market and fears of a global recession. Trump admitted the decision was emotionally driven, claiming it was “written from the heart.”
The move caused a massive stock market rally in the US:
- Dow Jones surged nearly 2,500 points
- Nasdaq jumped 12.2%, its best day in 24 years
- S&P 500 rose by 6%
- Oil prices and the US dollar also strengthened
Impact on India:
India had been hit by a 26% reciprocal tariff, but the 90-day pause is expected to provide relief. The Indian government, through ongoing negotiations with the US, is working toward a mutually beneficial trade agreement, said MEA Spokesperson Randhir Jaiswal.
