In a significant shift in global trade dynamics, US President Donald Trump has announced a temporary pause on sweeping reciprocal tariffs for dozens of countries, with China being the notable exception. While markets welcomed the 90-day reprieve, the decision highlights growing friction between Washington and Beijing, and opens up new strategic opportunities for nations like India. Trump’s administration had earlier imposed a staggering 125% tariff on Chinese imports in response to what officials described as unfair trade practices and economic manipulation. China retaliated swiftly, raising its tariffs on US goods from 34% to 84% starting April 10. The tit-for-tat escalation has triggered what many observers are calling a full-blown trade war between the two economic superpowers.
US Treasury Secretary Scott Bessent, addressing the media, emphasized that the tariffs were not about targeting allies but about calling out “bad actors” in the global trade system chief among them, China. “It’s not a trade war. It’s about bad actors,” Bessent said. “We’re seeing early movement from China’s neighbours Vietnam, Japan, South Korea, and India—who want to negotiate.”
The Trump administration has cast its tariff strategy as a calculated move to bring more countries to the negotiating table. Bessent called the aggressive April 2 tariff announcement a “successful negotiating strategy” that prompted over 75 countries to engage in talks with the US. With a 90-day suspension in place, the US is offering a 10% baseline tariff for countries willing to discuss fair trade terms.
India, which had faced a 26% tariff on its exports to the US (excluding pharmaceuticals and semiconductors), now finds itself in a relatively advantageous position. The pause allows New Delhi time to solidify its own trade strategy while potentially attracting businesses fleeing China’s high tariff environment. With many multinational companies eyeing alternative manufacturing hubs, India stands to gain if it can present a stable and open trade ecosystem.
Moreover, India and the US have already agreed on terms for a Bilateral Trade Agreement (BTA), which is expected to be finalized by autumn. The agreement was initiated during Prime Minister Narendra Modi’s recent US visit and could bolster India’s trade competitiveness in the long run. As the global trade order shifts, India’s measured approach may just pay off—especially with Trump seeking direct involvement in ongoing negotiations.
