<p class="bodytext">US President Donald Trump’s all-round tariff onslaught and retaliatory strikes by China have left global financial markets roiled. Stock markets are the first to be hit by such shocks and they crashed all over the world on Monday, destroying billions of dollars of investors’ wealth. While Hang Seng lost over 13%, Nikkei 8% and Kospi 5.6%, European markets lost heavily and there were wild swings in the US markets. Sensex and Nifty closed about 3% lower and Indian investors were left poorer by about Rs 20 lakh crore, though there was some recovery on Tuesday. Volatility and uncertainty will be the main features of the market in the coming weeks and months. Global crude oil prices have fallen, with benchmark Brent crude declining over 15% till now in April. Gold and commodity prices have also declined.</p>.<p class="bodytext">China has slapped a 34% duty on goods imported from the US and Trump has threatened that he would impose fresh 50% tariffs on Chinese imports. The threat has been countered by China which has promised steps “to safeguard its own rights.” China has also said that it plans to build a broad coalition to jointly oppose unilateralism and protectionism, and safeguard the international trading system. The world has responded differently to the tariff war started by Trump. While some countries have retaliated, others have expressed readiness to enter into deals with the US. The US has said that over 50 countries have approached it with proposals for negotiations. Within the US, many cities have seen protests. Many in the country, including economists, consider the tariff actions unnecessary and even damaging. There is a strong view that the US will have to face higher inflation and a recession and the claimed benefits of the tariff hike are unreal. Growth will certainly slow down in the US and other countries.</p>.China's tariff retaliation a big mistake, says US Treasury Secretary Scott Bessent.<p class="bodytext">If the tariff war continues, it will change world trade and many of its norms and practices. Most countries will be directly affected; every country will be indirectly affected. The EU has already issued a warning to countries that find themselves priced out of the American market not to dump cheap exports in its market. The concern about dumping is very real about China. It is also likely that Trump’s tariffs would encourage countries to enter into bilateral or regional trade deals. But these take time to negotiate. The immediate result will be an upending of the world trade order, with competition and rivalry driving it and each country trying to secure its position and interests in its own way.</p>
<p class="bodytext">US President Donald Trump’s all-round tariff onslaught and retaliatory strikes by China have left global financial markets roiled. Stock markets are the first to be hit by such shocks and they crashed all over the world on Monday, destroying billions of dollars of investors’ wealth. While Hang Seng lost over 13%, Nikkei 8% and Kospi 5.6%, European markets lost heavily and there were wild swings in the US markets. Sensex and Nifty closed about 3% lower and Indian investors were left poorer by about Rs 20 lakh crore, though there was some recovery on Tuesday. Volatility and uncertainty will be the main features of the market in the coming weeks and months. Global crude oil prices have fallen, with benchmark Brent crude declining over 15% till now in April. Gold and commodity prices have also declined.</p>.<p class="bodytext">China has slapped a 34% duty on goods imported from the US and Trump has threatened that he would impose fresh 50% tariffs on Chinese imports. The threat has been countered by China which has promised steps “to safeguard its own rights.” China has also said that it plans to build a broad coalition to jointly oppose unilateralism and protectionism, and safeguard the international trading system. The world has responded differently to the tariff war started by Trump. While some countries have retaliated, others have expressed readiness to enter into deals with the US. The US has said that over 50 countries have approached it with proposals for negotiations. Within the US, many cities have seen protests. Many in the country, including economists, consider the tariff actions unnecessary and even damaging. There is a strong view that the US will have to face higher inflation and a recession and the claimed benefits of the tariff hike are unreal. Growth will certainly slow down in the US and other countries.</p>.China's tariff retaliation a big mistake, says US Treasury Secretary Scott Bessent.<p class="bodytext">If the tariff war continues, it will change world trade and many of its norms and practices. Most countries will be directly affected; every country will be indirectly affected. The EU has already issued a warning to countries that find themselves priced out of the American market not to dump cheap exports in its market. The concern about dumping is very real about China. It is also likely that Trump’s tariffs would encourage countries to enter into bilateral or regional trade deals. But these take time to negotiate. The immediate result will be an upending of the world trade order, with competition and rivalry driving it and each country trying to secure its position and interests in its own way.</p>
