The US administration lead by president Donald Trump has released a list of Chinese goods worth $200 billion to be imposed with 10 percent tariffs. The $200 billion figure is roughly equivalent to half of the total exports made by China to the US. These tariffs are expected to be imposed by August 20-23 after a two-month review process.
Some of the listed goods are a part of Made in China 2025 sector- a plan to make China a leader in major global industries.
Following the news, Chinese stocks tumbled and the yuan weakened. The Hong Kong Hang Seng Index fell by 1.4 percent, while the Shanghai Composite Index slid by 1.6 percent and the yuan dropped 0.31 percent to 6.66 per dollar at around 11 am in China.
Mirroring losses in Asian markets, Indian equity markets opened lower. The S&P BSE Sensex was down by 0.1 percent or 35 points to 36,205, while Nifty 50 (NSE) lowered by 0.1 percent or 12 points or 10,935.
China is yet to formally react to the news of US' latest move. The newly proposed list by the US administration will include clothing, television parts, refrigerators and others but does not include high profile gadgets like mobile phones.