Trump’s reciprocal tariffs take effect undeterred by negotiations

The United States has officially enforced a sweeping new wave of reciprocal tariffs, with a staggering 104 per cent levy now imposed on all Chinese imports. Taking effect from midnight US Eastern Time (9:30 am IST), these tariffs mark a significant escalation in the global trade environment, even as Washington continues parallel negotiations with over 70 trade partners.

India is among the nations facing a 26 per cent tariff rate under the new regime. Despite ongoing diplomatic conversations, including a high-level call between External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio on Monday, the new tariffs remain firmly in place.

The White House confirmed that talks would proceed independently of the tariff rollout. “These reciprocal tariffs will continue to go into effect as these deals are negotiated,” said White House Spokesperson Karoline Levitt, adding that President Trump is committed to finalising “tailor-made” agreements with individual nations rather than adopting a uniform trade template.

China in the crosshairs

The most dramatic move, however, is the imposition of a 104 per cent tariff on Chinese goods, a direct response to Beijing’s retaliatory 34 per cent duty on US imports. President Trump had issued a 24-hour ultimatum to China to withdraw its counter-tariffs — a demand that was met with defiance from Beijing earlier on Tuesday. Hours later, Trump authorised the punitive measures.

While critics have questioned the evolving US position on negotiations, Levitt insisted the administration’s approach has been consistent. “President Trump has always been willing to pick up the phone and talk,” she said.

Trump also engaged in a series of diplomatic calls this week, including conversations with Japanese Prime Minister Shigeru Ishiba, South Korea’s Acting President Han Duck-soo, and Israeli Prime Minister Benjamin Netanyahu. However, he has yet to speak with Prime Minister Narendra Modi since the tariffs were announced.

No set timelines for trade deals

US Trade Representative Jamieson Greer, when pressed by lawmakers for a negotiation timeline, stated there was none. “We don’t have any particular timeline… the outcome is more important than an artificial deadline,” he said, adding that his team was “moving as quickly as possible.”

Levitt reinforced that the President has directed his trade officials to prioritize individualized agreements that reflect the unique economic relationship between the US and each trading partner. “Every deal should be unique — based on that country’s markets, exports, and what benefits American workers,” she noted.

China vows to fight the blow

Chinese Premier Li Qiang responded firmly, stating that China possesses ample tools to neutralize the economic shock from the US tariffs. Speaking with European Commission President Ursula von der Leyen on Tuesday, Li criticized Washington’s move as “unilateral, protectionist, and coercive,” and reiterated China’s commitment to upholding global trade norms.

Li also expressed confidence in China’s economic resilience for 2025, assuring that Beijing’s macroeconomic planning had already accounted for such external shocks. Meanwhile, Europe is also facing a 20 per cent tariff under the US’s new trade strategy.

As the global trading community reacts to the sweeping tariffs, markets remain on edge and international leaders brace for what could be a prolonged period of economic uncertainty and hard-fought negotiations.