US-China trade war over tariffs sends global markets crashing

US-China trade war over tariffs sends global markets crashing

The threat of a global trade war sent stock markets sliding on Friday and investors rushing for the safety of currencies like the yen and government bonds, after US President Donald Trump announced tariffs of $60 billion on Chinese goods.

Indian shares fell over 1% on Friday, with the broader NSE index closing below the 10,000 level for the first time since October, after heated rhetoric between the United States and China over import tariffs sparked fears of a trade war.

As the NSE index closed 1.15% lower at 9,998.05, and the benchmark BSE index ended down 1.24% at 32,596.54, Commerce and Industry Minister Suresh Prabhu on Friday said India was looking at other options and new markets to increase its exports.

"If any country takes a unilateral action, we will definitely take note of it and deal with it appropriately. We are trying to explore new markets and products by doing market research," Prabhu said in Delhi.

While China retaliated to Trump's decision to impose tariffs on Chinese imports, the US said India may be in a position where it would want to retaliate. In Beijing, China on Friday warned America not to be "penny wise and pound foolish", as it unveiled plans to impose higher tariffs on 128 US products worth about $3 billion.