U.S. President Donald Trump announced a significant decision on Wednesday, temporarily suspending import tariffs (tariffs) imposed on most countries worldwide for 90 days. This move is seen as a step towards easing global trade.
Tariff Plan: On Wednesday, U.S. President Donald Trump made a major change in global trade policy, announcing a 90-day temporary waiver on import tariffs (tariffs) for most countries except China. This decision provides relief from substantial tariffs to over 75 countries, including India, while simultaneously increasing tariffs on China to 125%.
India Receives Tariff Relief
This decision is particularly beneficial for India, as the Trump administration recently imposed tariffs of up to 26% on Indian products, increasing pressure on the domestic market. This 90-day reprieve could rekindle warmth in India-U.S. trade relations. India's Ministry of External Affairs has indicated that negotiations on a trade agreement between the two countries are progressing rapidly, with a major announcement possible soon.
Trump's Firm Stance on China
China is excluded from this tariff relief. Trump has ordered the immediate implementation of a 125% tariff on China, up from the previous 104%. This decision is framed under America's 'fair trade' policy. Trump stated, "China has repeatedly violated international trade rules. It is time they paid the price."
Sharp Rise in U.S. Markets
Following the announcement of the temporary tariff suspension, the U.S. stock markets experienced a dramatic surge. The Dow Jones Index jumped nearly 2,500 points, closing at 40,048.59, one of the largest gains in recent years. The Nasdaq saw a historic increase of 12.2%, while the S&P 500 surged approximately 6% to 5,281.44. This surge has also boosted investor confidence.
Underlying Reasons for Tariff Suspension
The decline in the U.S. bond market and rising economic tensions are considered major factors behind this sudden decision. According to a CNN report, U.S. Treasury Secretary Scott Besant warned Trump that the pressure of tariffs could harm the U.S. economy. Trump subsequently implemented this decision with immediate effect.
Experts believe Trump's stance may be influenced by upcoming presidential elections. While maintaining a tough stance against China, he may be signaling cooperation with other nations to strengthen America's global trade position and manage domestic economic pressures.
