Washington: US President Donald Trump on Thursday said trading partner countries that are not able reach an agreement with the US by July 9, when the 90-day pause ends, goods coming to the US from there will be tariffed at the reciprocal rate announced originally.
For India, it would mean the tariff will go back to 26 per cent from the revised 10 per cent. Rates for other countries similarly revised for all partner countries that chosen to launch negotiations with the US instead of retaliating with higher tariffs on American goods, such as China, which is under a 125 per cent US levy.
“If we can’t make the deal that we want to make, or we have to make, or that’s, you know, good for both parties, just got to be good for both parties, then we go back to where we were,” Trump said at a news conference following a meeting of the cabinet that was aired live.
“Go back to the numbers.”
Asked if he may extend the pause, he said: “We’ll have to see what happens at that time.”
President Trump announced a pause in the tariffs to a low of 10 per cent for imports from all trading partner countries that had not hit back with retaliatory levies on American goods, which would be upwards of 75 countries that have chosen to reach out to the administration to negotiate some kind of a deal, which included India that is discussing a Bilateral Trade Agreement with the US.
China is the most significant exception to Trump’s abrupt reversal. He has raised the tariffs on Chinese goods to 125 per cent, in response to China’s retaliatory levy of 84 per cent on American goods.
These details became official in an executive order issued Wednesday evening. He first announced the pause and the revised levies in a post on Truth Social midday as the markets were in tumult for another day over the tariffs, this time with the sell off treasury bonds. Indexes roared up shortly after with the tech-heavy Nasdaq soaring to a two-decade high.
“I thought that people were jumping a little bit out of line,” the American president told reporters when asked for his reasons for the sudden reversal that took even his own officials by surprise. “They were getting yippie, you know, they were getting a little bit a little bit afraid.”
“You have to be flexible,” he added, when pressed.
While President Trump had indicated his readiness to negotiate when he announced the “reciprocal” tariffs, his top aides had insisted the levies were not negotiable. But the president was moving towards it and said he decided to do it on Wednesday morning.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 per cent, effective immediately,” President Trump wrote on Truth Social.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately,” he said further.
