China fires back with US$50 billion Tariff

The fear of trade war between the two largest economies has grappled markets across the globe. In a retaliatory measure China imposed tariff on 106 products ranging from soya to cars and aircraft. This was in response to Trump administration's proposed hike in import tariffs on hi-tech goods originating from China announced on Tuesday.

 
China alleges that the planned charges or tariffs on 1,300 products were baseless and violation of WTO rules. Citing this China plans to levy 25 per cent tariff on products including soyabean, automobiles, chemicals and aircraft.

Meanwhile, the Indian markets took a hit post the announcement by China as investors moved to safe heavens like gold. Asian markets tanked in the range of 1 per cent to 3 per cent with Hang Seng falling the most by 661 points. European market also retreated in the range of 1 per cent to 1.5 per cent across the board. While gold is trading at a high with investors flocking into safe heavens as trade war leaps forwards.

The fear of trade war between two largest economies will impact international trade and consequently economic growth as both the nations hold significant share in global trade.