US President Donald Trump announced on Thursday that countries failing to reach a trade agreement with the United States by July 9 will face the original tariff rates previously outlined, ending the current 90-day pause.

For India, this means tariffs will revert to 26 per cent from the reduced 10 per cent rate. Other nations that entered negotiations instead of imposing retaliatory tariffs—like India—will also face original rates unless a deal is reached. Countries such as China, which retaliated with tariffs on US goods, are already facing much steeper US tariffs, with Chinese goods currently taxed at 125 per cent.

“If we can’t make the deal that we want to make, or that’s good for both parties, then we go back to where we were,” Trump stated during a cabinet press briefing aired live.

Asked about a possible extension of the pause, he replied, “We’ll have to see what happens at that time.”

Trump had earlier offered a 90-day tariff reprieve, dropping the rate to 10 per cent for over 75 partner countries that opted to negotiate instead of retaliate. India is among those countries, currently in talks with the US over a potential Bilateral Trade Agreement.

Trump emphasized flexibility in trade discussions, stating his decision to pause the tariffs and revise the rates was finalized on Wednesday morning. The announcement came amid market turbulence, which saw a rebound after his message on Truth Social helped calm investor fears. The tech-heavy Nasdaq index jumped to a two-decade high shortly after.

Trump’s shift surprised many in his own administration, especially since his top advisers had said the tariffs were non-negotiable. Yet, the President moved ahead, citing the need to respond to ongoing global trade dynamics.

He specifically criticized China, citing its “lack of respect” for global markets as the reason behind the steep 125 per cent tariff.

In an executive order issued Wednesday evening, Trump officially authorized the tariff pause and reduction, while warning of a return to original rates if negotiations falter.