As the world watches to see how the current dialogue between the US and its key trading partners fares in light of recent tariffs and retaliatory tariffs, Asian stock markets experienced a six-month low in market share prices on Tuesday, fuelled by what appears to be an imminent trade war between the US and China. While the DOW Jones and S&P 500 saw drops of at least 0.63 percent, in the case of the latter, the Nikkei lost one whole percentage point. Even the NASDAQ Composite Index saw a drop of 0.88 percent.
Though some talk of negotiating and working to a more amicable state of trade between the countries currently impacted by these tariffs, there has been no letting up in the tough rhetoric from any of the nations involved in, which continues to cast doubt on what will happen in the next few months. Of primary concern to most Asian nations is the potential souring of economic ties between the US and China, as this will be the gauge by which the majority of trade and economic activity in the region is mentioned.
Adding to this is the fact that India is also exacting its pound of flesh by reacting strongly to the policies of the US government, threatening to impose tariffs, and already doing so in the case of almonds and walnuts, but soon to be extended to a total of 30 products that it imports from the US. Some high-level discussions have been speculated as being initiated so far to help bring about a resolution, but it will remain to be seen how quickly anything will happen to reverse the path that all of these nations are on to react to the tariffs that US set to begin with.