Mumbai: Moody’s said on Friday that already tense situation between the US-China which has roiled the global financial markets and has pulled down global growth, may worsen from here on as the risk of a complete fall-out in the two countries' trade talks has increased.
The US on Friday more than doubled tariffs on $200 billion worth of Chinese products from 10 percent to 25 percent, in a sharp escalation of the trade tensions to which China has said that it would respond with necessary countermeasures.
“While we believe that a trade deal will eventually be reached between the US-China, the risk of a complete breakdown in trade talks has certainly increased,” Moody’s said.
On the immediate impact on the export sector, Moody’s said that in the rest of Asia’s export-dependent economies, a slowdown in China will dampen the growth rates. (IANS)
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