reciprocal tariffs

China urges the US to completely eliminate reciprocal tariffs imposed during the Trump administration, which have escalated to 145%. Describing the recent tariff exemption on consumer electronics as a "small step," China is assessing the overall impact. Businesses are increasingly concerned about the sustainability of US-China trade relations due to these escalating tensions and retaliatory levies.

The announcement of reciprocal tariffs is likely to open up fresh rounds of bilateral tariff negotiations and unilateral actions. This may also result in re-alignment of supply chains which were thus far reliant on rule-based trade under WTO.

Donald Trump said that he's backing down on most nations' tariffs for 90 days amid market meltdown, but he's raising China tariffs. Market participants have been urging Trump to reduce tariffs, as economists warn that these measures could trigger a worldwide economic downturn and push prices higher.

President Trump is set to introduce tariffs on imported semiconductors, potentially reshaping the electronics trade. This follows a temporary reprieve for smartphones and computers from reciprocal tariffs on China. Trump emphasized the need to bolster domestic chip production and hinted at possible exemptions, while a national security investigation into the semiconductor sector is underway.

The Donald Trump administration has till now shown no inclination to blink on the implementation of the reciprocal tariffs. They have however, shown openness to negotiate with countries, and India is already working on a trade deal with the US. If no imminent relief on tariffs is on the horizon, what should the world do? What should India do to counter the impact of Trump’s reciprocal tariffs?

On April 2, 2025, President Trump announced tariffs to assert US economic independence, targeting countries including China. He insists this will revitalise domestic manufacturing, though it risks a global trade war. Trump expressed frustration with international trade practices, vowing to boost jobs and industry within the US while portraying his measures as a necessary resistance against foreign exploitation.

Commerce Secretary Howard Lutnick announced that while certain electronic devices are temporarily exempt from recent tariffs, they will soon face new "semiconductor tariffs" within a couple of months, aiming to reshore production to America. China has urged the U.S. to completely cancel its reciprocal tariffs and correct its mistakes, viewing the exemptions as insufficient amidst the ongoing trade war.

With the US pausing reciprocal tariffs, Indian aluminium producers are closely monitoring trade flow changes, though the pause doesn't affect existing 25% levies. India's steel exports to the US are minimal, but concerns remain about potential dumping from nations like China. In FY24, India's mineral and non-ferrous metal exports to the US reached USD 1,291 million, with aluminium dominating.

White House has revised downward to 26% the reciprocal tariff on India from an initially published 27%. Several countries experienced their rates varying slightly before final rates were confirmed.

US President Donald Trump has announced reciprocal tariff on all foreign goods starting April 2025. This move could potentially shake up global trade dynamics. However, experts suggest India may experience minimal impact.

Bill Ackman, a Donald Trump supporter, suggests pausing China tariffs. He proposes a 90-day suspension. Ackman believes this helps US businesses adjust. He wants tariffs reduced to 10% temporarily. This encourages supply chain relocation, he says. Ackman thinks China will negotiate. A deal benefits both nations. Trump can reimpose tariffs if needed. This approach minimizes economic disruption.

Asian markets surged on Thursday after Trump announced a 90-day pause on most planned tariffs, replacing them with a reduced 10% Reciprocal Tariff. The move sparked a global relief rally, with Wall Street recording historic gains and Asian indices following suit. Japan’s Nikkei 225 soared over 2,000 points, and Taiwan's tech-heavy Taiex surged 9.2%.

India views the USA's announcement of 26% reciprocal tariffs as a 'mixed bag' rather than a 'setback.' The imposition includes a universal 10% tariff on all imports starting April 5, with an additional 16% from April 10. Discussions on a bilateral trade agreement between the two nations continue, aiming for completion by fall.

US Customs and Border Protection has issued new guidelines exempting specific technology devices and components from reciprocal tariffs initiated by President Trump. This decision offers relief to tech companies like Apple, which manufactures a significant portion of its products in China. The exemptions include laptops, semiconductors, and data storage devices, potentially mitigating the impact of previous tariff threats.

Tokyo's envoy for US tariff talks left for Washington on Wednesday saying he was confident of a "win-win" outcome while protecting Japanese national interests. The minister, who studied at a US university and is close to Prime Minister Shigeru Ishiba, said he wants to "protect our national interests" in talks with Bessent and Greer, who are "fond of Japan".

Amidst rising US tariffs, Apple is strategically considering expanding iPhone production in India, aiming to mitigate financial impacts on US-bound exports. The company has already expedited shipments from India and plans to increase manufacturing there.

Despite US tariff exemptions on some tech, Chinese-made gaming consoles like the upcoming Nintendo Switch 2 may face hefty import duties. A key Apple and Nintendo supplier indicates a potential 145% US tariff under Trump's trade policy. Other Chinese products, including smart speakers and TVs, also face steep tariffs, impacting the gaming and electronics industries.