US Maintains 10% Baseline Tariff Amid Trump Pause — Impact on India Explained

President Donald Trump extended a 90-day Trump tariff pause to most countries without including one specific nation.

Trump announced on Truth Social that after seeing more than 75 countries contact US representatives for India-US trade talks and refraining from any retaliatory action against America following his suggestion he authorized a 90-day halt on tariffs and reduced the reciprocal tariffs to 10% immediately.

This article explains the potential effects of Trump's recent announcement on global trade tensions markets.

DO ALL RECIPROCAL TARIFFS GET PAUSED?

The 90-day reciprocal tariffs suspension applies to all countries but not China. Everyone remains subject to the baseline tariff of 10% which started on April 5.

WHAT DOES THIS MEAN FOR INDIA?

Since Trump's presidency began India has been engaged in trade discussions with the US unlike any other country. Trump's recent announcement indicates that the reciprocal tariffs of 26% imposed on India will be paused. The 10% baseline India tariff relief implemented for all nations on April 5 continues to be active.

WHAT DOES THIS MEAN FOR CHINA?

The White House has raised the tariff rate on the People's Republic of China to 125% in response to China's retaliatory actions against reciprocal tariffs.

WHAT DOES THIS MEAN FOR THE EU?

The European Union reciprocal tariff rate of 20% remains paused since their retaliatory tariffs have yet to go into effect.

How will these changes impact Canada and Mexico?

The tariff rates for fentanyl exported to Canada and Mexico have not been modified. USMCA trade transactions remain free of tariffs while non-USMCA commerce incurs a 25% tariff except energy and potash products which face a 10% tariff.