In a dramatic escalation of the US-China trade war, President Donald Trump on Wednesday raised tariffs on Chinese goods to 125%, hours after Beijing retaliated with an 84% levy on American imports. The tit-for-tat escalation comes amid plummeting global markets and mounting concerns over prolonged economic instability.
While doubling down on China, Trump offered a reprieve to other nations, announcing a 90-day pause on tariffs above the baseline 10% rate. He praised over 75 countries for not retaliating and said the pause was a reward for their “constructive approach.”
India, which faces a 26% levy, has responded cautiously. MEA spokesperson Randhir Jaiswal confirmed that bilateral talks are ongoing to finalise a multi-sectoral trade deal with the US. Although the pause offers temporary relief to global markets, analysts point to growing policy unpredictability in Washington, with conflicting signals from the Trump administration on whether tariffs are punishment or leverage.
