<p>Moody's investor services on Friday said the 25% tariffs imposed by the US on $200 billion of Chinese imports from the previous 10% could exacerbate the uncertainty in the global trading environment and lead to the weakening of the rules-based system that has underpinned global growth, particularly in Asia, over the past several decades.</p>.<p>“Higher tariffs could also lead globally to the repricing of risk assets, tighter financing conditions, and slower growth,” Michael Taylor, Managing Director, Credit Strategy, Moody’s Investors Service said.</p>.<p>In addition, the trade tensions could result in an increasingly fragmented global trading framework;</p>.<p>For China in particular, the higher tariffs will have a significant negative effect on exports, against the backdrop of a slowing economy. Further, policy easing will mitigate only some of the impact, and increased uncertainty and weaker business sentiment will hinder private investment decisions, he said in a statement.</p>.<p>His statement came after he United States hiked tariffs on more than $200 billion in goods from China Friday, the biggest action on commerce by President Donald Trump that is sure to hit consumer demand in the US and have a spiralling impact on other economies.</p>.<p>The new US tariff at the rate of 25% would be imposed on 5,700 product categories from China.</p>.<p>“(China) deeply regrets that it will have to take necessary countermeasures,” China’s Ministry of Commerce said in a statement.</p>.<p>China's stocks jumped after an initial wobble following the tariff hike. The sentiments elsewhere in Asia were mixed. Indian stocks opened strong but gave up their initial gains after the news</p>.<p>“While we believe that a trade deal will eventually be reached between the US and China, the risk of a complete breakdown in trade talks has certainly increased,” Moody's said.</p>
<p>Moody's investor services on Friday said the 25% tariffs imposed by the US on $200 billion of Chinese imports from the previous 10% could exacerbate the uncertainty in the global trading environment and lead to the weakening of the rules-based system that has underpinned global growth, particularly in Asia, over the past several decades.</p>.<p>“Higher tariffs could also lead globally to the repricing of risk assets, tighter financing conditions, and slower growth,” Michael Taylor, Managing Director, Credit Strategy, Moody’s Investors Service said.</p>.<p>In addition, the trade tensions could result in an increasingly fragmented global trading framework;</p>.<p>For China in particular, the higher tariffs will have a significant negative effect on exports, against the backdrop of a slowing economy. Further, policy easing will mitigate only some of the impact, and increased uncertainty and weaker business sentiment will hinder private investment decisions, he said in a statement.</p>.<p>His statement came after he United States hiked tariffs on more than $200 billion in goods from China Friday, the biggest action on commerce by President Donald Trump that is sure to hit consumer demand in the US and have a spiralling impact on other economies.</p>.<p>The new US tariff at the rate of 25% would be imposed on 5,700 product categories from China.</p>.<p>“(China) deeply regrets that it will have to take necessary countermeasures,” China’s Ministry of Commerce said in a statement.</p>.<p>China's stocks jumped after an initial wobble following the tariff hike. The sentiments elsewhere in Asia were mixed. Indian stocks opened strong but gave up their initial gains after the news</p>.<p>“While we believe that a trade deal will eventually be reached between the US and China, the risk of a complete breakdown in trade talks has certainly increased,” Moody's said.</p>
