US-China Tariff Escalation: China retaliated to US tariff hikes by raising tariffs on US goods to 125%. The US had earlier imposed 145% tariffs on Chinese goods.
Global Recession Fears: The tariff escalation has raised concerns about a global recession. Investors fear reduced demand and economic slowdown.
Commodity Market Impact: Cocoa, coffee, and sugar prices recovered but were still heading for weekly falls amid demand concerns due to the trade war.
Dollar Weakness: The dollar fell broadly due to concerns about US tariffs, reaching a decade-low against the Swiss franc.
Trade Diversion: Customs authorities are on alert for potential dumping and rerouting of goods through India due to high US tariffs on China.
India’s Response: India is fast-tracking trade deals with the EU and UK to mitigate supply chain shocks and aims to attract supply chains exiting China. The US suspended additional tariffs on India for 90 days until July 9th, leading to a surge in the Sensex and Nifty.
Global Concerns: The IMF highlighted uncertainty for Sri Lanka due to Trump’s tariffs. French PM urged EU members to stick together amid trade tensions.
China’s Response: Xi Jinping called for China and the EU to resist “unilateral bullying” (referring to US tariffs). China’s yuan rebounded from 2007 lows, but slides against trading partners
Impact on Companies: TCS warned that US tariff chaos is hurting client sentiment.
Thailand Corn: Thailand will cut tariffs on imports of corn from the United States
Eu Talks: EU trade chief Sefcovic to go to Washington for talks on Monday
