Washington: US President Donald Trump announced that he has paused the implementation of most of his “reciprocal” tariffs because some people were getting “yippy” and “a little bit afraid.”
Trump announced a pause in the tariffs to a low of 10 per cent for imports from all trading partner countries that had not hit back with retaliatory levies on American goods, which would upwards of 75 countries that have chosen to reach out to the administration to negotiate some kind of a deal, which included India, which is discussing a Bilateral Trade Agreement with the US.
China is the most significant exception to Trump’s abrupt reversal. He has raised the tariffs on Chinese goods to 125 per cent in response to China’s retaliatory levy of 84 per cent on American goods.
Trump announced the revised levies in a post on Truth Social on Wednesday midday as the markets were in tumult for another day over the tariffs, this time with the sell-off treasury bonds. Indexes roared up shortly after, with the tech-heavy Nasdaq soaring to a two-decade high.
“I thought that people were jumping a little bit out of line,” the US President told reporters when asked for his reasons for the sudden reversal that took even his own officials by surprise.
“They were getting yippie, you know, they were getting a little bit a little bit afraid,” he said.
“You have to be flexible,” he added when pressed.
While Trump had indicated his readiness to negotiate when he announced the “reciprocal” tariffs, his top aides had insisted the levies were not negotiable. But the President was moving towards it and said he decided to do it on Wednesday morning.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 per cent, effective immediately,” President Trump wrote on Truth Social.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non-Monetary Tariffs and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorised a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 per cent, also effective immediately,” he said further.
US markets have been in turmoil since the reciprocal rates went into effect, and calls have emerged from some key Wall Street influencers, such as Bill Ackman, for a 90-day pause. Trump has also faced some pushback to the tariff from a key advisor, Elon Musk, who has criticised them and engaged in a public spat with Peter Navarro, a key trade advisor to the US President.
Trump’s sights were set on the market that had been in turmoil.
“Be cool! Everything is going to work out well,” he wrote in a post on Truth Social just minutes after the markets opened in the morning. “The USA will be bigger and better than ever before.”
Minutes later, he posted an advisory for investors (in all caps): “This is a great time to buy.”
(IANS)
