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Sensex Rout: Indian Markets Hit by US-China Tariff War

8 April 20251 min read
ECONOMYSensex Rout:Indian Markets Hitby US-China TariffWar8 April 2025safalsetu.com

Why in the news

Indian shares tumbled the most since the COVID-era crash as the US-China tariff fight raised recession fears.

Key facts

  • Markets in Japan, South Korea, Hong Kong and China also fell, hinting at wider contagion.
  • US President Donald Trump warned on Truth Social of 50% extra tariffs from April 9 if China did not withdraw its 34% increase by April 8, and hinted at deals with other partners.
  • The Volatility Index (VIX) spiked; fund managers moved to gold and US Treasuries.

Significance

  • Seen as fear of protectionism and a slowing world economy, not a mere correction; RBI and other central banks may respond.

Exam angle

  • VIX gauges volatility; gold and Treasuries are safe havens.

Test yourself

1. What additional tariff did Trump threaten on China from April 9 in this episode?

He threatened additional 50% tariffs if China did not withdraw its 34% increase.

2. Which assets did global fund managers prefer as safe havens during the sell-off?

Fund managers leaned towards gold and US Treasuries.

3. Indian equities recorded their steepest fall since which event?

The fall was the steepest since the COVID-era crash.

This topic is part of Daily Current Affairs 8 April 2025 (25 topics).

All topics of the dayDay quizApril 2025

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