US-China trade war: Why it is a double whammy for Indian markets

As predicted by IMF, the threat to the global economy seems real now. President Trump's focus will also shift to target other countries for such tariff hikes and India will be no exception.

Escalating tensions between the US and China along with rising geopolitical tensions led to depressed sentiment across the global markets. Markets were rattled after a tweet by President Trump last Sunday stating that he would increase the tariff to 25 per cent from 10 per cent on $200 billion worth of Chinese goods and this was implemented during the week. He also threatened to impose 25 per cent tariffs on an additional $325 billion of Chinese goods "shortly." To which China said it would take 'necessary retaliatory measures' if U.S. tariffs are raised. The IMF said the worsening dispute posed