#TariffsPause US President Donald Trump has announced a 90-day pause on reciprocal tariffs for many countries, including India, while increasing duties on China to 125%. This move aims to maintain pressure on China while encouraging other countries to negotiate trade agreements.
*Impact on India:*
- *Relief for Exporters*: The pause is a significant relief for Indian exporters, especially shrimp exporters, who can now focus on advancing trade talks with the US.
- *Trade Agreement*: India and the US had announced plans to complete the initial phase of a trade agreement by autumn 2025, targeting $500 billion in bilateral trade by 2030.
- *Duty-Free Imports*: India is open to considering duty-free imports from the US in multiple sectors, including those covered under Production Linked Incentive (PLI) schemes ¹.
*Market Reaction:*
- *Stock Market Surge*: The S&P 500 jumped 9.5% following Trump's announcement, marking its biggest single-day leap since 2008 .
*Key Details:*
- *Tariff Rate*: The US reciprocal tariff for India remains at 10% during the 90-day pause.
- *China Tariffs*: Trump increased tariffs on Chinese imports to 125% to maintain pressure on China.
- *Trade Talks*: The pause provides a window for India and the US to advance discussions on the proposed bilateral trade agreement .
