#TariffsPause

The United States has paused reciprocal tariffs for 90 days for most countries, except China, while maintaining a base tariff of 10% on all imports. Here’s what this means for major trading partners [1]:

- *India*: The reciprocal tariff of 26% on India will be paused, but the base tariff of 10% remains in effect. India is negotiating a trade agreement with the United States and hopes to obtain a full exemption from reciprocal tariffs.

- *China*: China's retaliatory tariffs resulted in a tariff rate of 125%, which remains unchanged during the pause.

- *European Union*: The EU's reciprocal tariff rate of 20% will be paused, and only the base tariff of 10% will apply.

- *Canada and Mexico*: Tariffs on fentanyl remain unchanged, and USMCA trade is tariff-free, while non-USMCA trade has variable tariffs.

- *Tariffs on steel, aluminum, and automobiles*: Section 232 tariffs on these sectors remain unchanged, with tariffs of 25% on imports.

Some sectors have been exempted from reciprocal tariffs, including:

- *Pharmaceuticals*: Initially exempt, but Trump has warned that tariffs may be applied.

- *Semiconductors*: Exempt from reciprocal tariffs.

- *Critical minerals*: Exempt from reciprocal tariffs.