China has announced fresh tariffs on US imports and launched an anti-trust probe against Google in response to the latest trade restrictions imposed by the United States. The Chinese Finance Ministry stated that a 15% tariff will be levied on US coal and liquefied natural gas, while a 10% tariff will be imposed on crude oil, farm equipment, and certain automobiles. These tariffs will take effect on February 10.
In a similar move, China’s anti-monopoly watchdog started investigating Google for anti-trust violations. The investigation comes a little over a week after US President Donald Trump levied a 10% tariff on Chinese goods, reviving tension between the two powers economically. China’s Commerce Ministry also restricted key materials, including tungsten, tellurium, ruthenium, and molybdenum, in national security’s name.
The Indian market plunged in response to these events. Nifty index plunged below 23,500, having reached a high of 23,582, and the Sensex shed 300 points off its high, trading at 77,650 at 11:15 AM. The Indian rupee too took a hit with global markets spooked at the intensification of the trade war. The US dollar appreciated, and the Chinese yuan weakened, a reflection of uncertainty in investments.
Bitcoin also experienced sell-off, down 3% at $98,750. S&P 500 future shed 0.4%, and European stocks’ future relaxed 0.2%, a sign of general nervousness in the overall market.
Market experts believe that the ongoing US-China trade war can go on and produce continued uncertainty in global markets. Even with an agreement with Canada and Mexico to suspend tariffs, tension with China continues, and investors have been kept in a state of uncertainty.
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Source: Moneycontrol.
News Desk
