Investing.com - Global equities fell sharply on Monday as Beijing announced plans for retaliatory tariffs on $60 billion of U.S. imports, sparking fears that the latest escalation in the Sino-U.S. trade war could derail the global economy.
The move by China came after the Trump administration hiked tariffs on $200 billion of Chinese imports to 25% from 10% last Friday. U.S. President Donald Trump had also warned China to not retaliate, threatening that it would only make matters worse.
Investors are now turning their attention to the upcoming G20 meeting in late June, where Trump and his Chinese counterpart Xi Jinping are set to meet. Until then market participants will be looking for any indications that the two sides are getting closer to a deal to resolve the more than 10 month old trade conflict.
Until then, markets could remain vulnerable to volatility sparked by the Tweeter- in-Chief.