Who are the guests?
This week 100 person Chinese delegation headed by China’s Vice-Premier Liu He (Chinese President Xi Jinping’s key adviser) is going to visit the USA for negotiating trade deals to end the trade war. However, before the Chinese delegation comes, US President threatens the guests with the announcement to increase tariff on almost all of China’s export to the USA.
US President tweeted on Sunday that tariffs on $200 billion of Chinese goods will increase from 10% to 25% from Friday and would introduce fresh tariffs of up to 25% on $325 billion of untaxed goods.
Now after the announcement by US president,
China may send the delegation but Vice-Premier Liu He may not be part of the delegation.
With the announcement by US President, the Chinese stock market’s (Shanghai Stock Exchange) SSE composite index fell by more than 5.5% and Hong Kong’s Hang Seng Index reduced by nearly 3%.
Our Indian stock market also felt the effect and Nifty and Sensex also fell by around 0.9%.
Result will be
The trade war between the world’s most dominant economies China and the US will affect the growth of both the nations and thereby the growth of the global economy as per the International Monetary Fund.