Duty hike on Chinese goods adds to uncertainty
The US duty hike on US$ 200 billion worth of Chinese imports came into effect today. US President Donald Trump has said that this is important to ensure that China abides by its commitments made earlier in the negotiations.
Moody’s Investor Services has stated that this move “exacerbates the uncertainty” in the global trading environment, which could possibly lead to repricing of risk assets, tighter financing conditions and slower growth. China has threatened to retaliate against the US move. The duty hikes would impact advanced technology exports from China and also impact growth in other export-dependent Asian economies.