The global tariff war escalated on Tuesday with China threatening to "fight till the end" after US President Donald Trump threaten...
The global tariff war escalated on Tuesday with China threatening to "fight till the end" after US President Donald Trump threatened to impose a fresh 50 per cent tariff on Chinese imports if China did not withdraw its retaliatory tariff of 34 per cent. After Monday's "bloodbath" on stock markets across the globe, Asian stock markets recovered on Tuesday regained only a fraction of the previous day's losses. On Tuesday, China's commerce ministry said, "The US threat to escalate tariffs against China is a mistake on top of a mistake, and it once again exposes the blackmailing nature of the US." In Mumbai, both the Sensex and the NSE made a robust recovery on Tuesday with major shares trading in the green. Yet, clouds of recession loom all over the world. Even people in the US are worried after President Donald Trump's all-out tariff war. There were rallies in all the states of the US to protest against Trump's policies to sack government staff and cut expenditure. America under Trump has launched a trade war against the rest of the world. None of the countries wants a confrontation with the US, but they are being forced to offer resistance. The prevailing sentiment across the world is that the era of globalization will soon end and the world order will change. These sentiments are affecting the plunge in world stock markets. Indices on stock exchanges rise or fall on the basis of sentiment. China’s retaliation has had its effect. Looking from India’s point of view, two or three points need to be elaborated. One, the commerce ministry has sent five proposals to the ministry of finance to help Indian exporters and has suggested the continuation of subsidy schemes along with raising bank credit. Two, India does not want a confrontation with the US on the tariff issue. India’s policy is to get the tariff reduced through bilateral negotiations, but this won’t be easy because Trump has already strengthened his position quite a bit as far as bargaining is concerned. Three, Trump is not going to stop after raising tariffs alone. In the coming days, American demands will rise, and the pressure will continue on the economy and stock markets. India’s main concern is about those sectors where millions of farmers and workers are employed, like textiles, footwear and agriculture. The government of India is trying its best to protect the interests of these farmers and workers. In bilateral talks with the US, India will negotiate for a low tariff for these sectors. As far as investors are concerned, there is nothing much to worry. The slump in stock markets will not continue for long. Experts say that there is no need to sell shares because of panic. On the contrary, now is the time to buy shares because of low prices. But it is not necessary to invest all your money in shares. For investors, the advice is on the lines of that famous Hindi movie song: "Ai Bhai Zara Dekh Ke Chalo, Aage Hi Nahin, Peechey Bhi" (Be careful).from IndiaTV India: Google News Feed https://ift.tt/HLdXWlC
