April 4 (Lagos) - China upped the ante today with imposition of 34% additional tariffs on all US goods effective April 10. China has also fined a lawsuit against US tariffs at the World Trade Organization dispute settlement mechanism.
Two days ago, US President had announced 34% tariffs on all Chinese products entering the US. Those tariffs were on top of tariffs that were already in place previously.
Stock markets declined across the world as the trade war becomes a real problem and a new world order emerges based on these new rules. Gold prices are touching all time highs and the yields of US bonds are dropping leading to lower borrowing costs for the US Government.
The US Dollar weakened slightly against other major currencies. However this could have a negative effect of Nigerian euro-bond where yields could go up as investors run away from riskier assets back into US treasuries and bonds. What it means is the borrowing costs of the Nigerian government could go up and since we have been on a borrowing binge, it could negatively impact our economy.