US-China Trade War 2019 – How it May Impact India – Gold Silver Reports

It all started in March last year when US President Donald Trump had slapped heavy tariffs on imported steel and aluminium items from China and it responded by imposing tit-for-tat tariffs on billions of dollars worth of American imports.

The dispute intensified after the US demanded that China must reduce its $375 billion trade deficit with the US and give more access to American goods in Chinese markets.

Read More : Breaking News – U.S. Tariffs Planned For $300 Billion More – Gold Silver Reports

The International Monetary Fund (IMF), in a report earlier this year, had stated that the US-China trade tension was one factor that contributed to a “significantly weakened global expansion” late last year, as it cut its global growth forecast for 2019. IMF chief Christine Lagarde had also said that fresh trade tensions between the United States and China were threat to the world economy.

IMF chief says US-China tensions ‘threat’ to world economy. The head of the International Monetary Fund, Christine Lagarde, said on Tuesday that fresh trade tensions between the United States and China were the main threat to the world economy. President Donald Trump jolted global markets on Monday by threatening on Twitter that tariffs already imposed on $200 billion in Chinese exports to US would more than double to 25 per cent on Friday from their current level of 10 per cent.

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Impact on India

For India, a significant shift in the manufacturing sector is awaited and this could be a golden opportunity for India, especially if it is properly positioned. Although, if the tension persists for long, then there could be a slowdown in the economy too.

The United Nations had said in a report that India is among few economies that stand to benefit from the trade tensions between the world’s top two economies.

India among countries to benefit from US-China trade war: UNIndia is among the several countries that stand to benefit from the trade tensions between the US and China, the UN has said in its latest report. The US and China are locked in a trade war since President Donald Trump imposed heavy tariffs on imported steel and aluminium items in March last year, a move that sparked fears of a global trade war.

Stock markets bleeding

World stocks hovered near two-month lows, although slightly more optimistic comments from the US and Chinese officials on trade brought some comfort a day after equities suffered their worst selloff so far this year.

Domestic stock markets are facing the heat too. The benchmark BSE sensex shed 1,941 points in just nine trading sessions. However, some experts have said that the uncertainty in markets can also be due to the pending results of the 2019 general elections. Equity indices are expected to bounce back after the results are announced on May 23.

Meanwhile, indices turned green on Tuesday with sensex finishing 228 points higher at 37,319, while the broader NSE Nifty settled at 11,222.

Sensex snaps 9-day losing streak, ends 228 points higher Equity indices on Tuesday finished in green after falling for nine straight sessions with the benchmark BSE sensex rising over 200 points. Sensex jumped 228 points or 0.61 per cent to finish at 37,319, while the broader NSE Nifty moved 74 points or 0.66 per cent up to settle at 11,222.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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