The Trump administration faces growing pressure from hard-hit US companies to delay collecting tariffs on imported goods as efforts to stem the coronavirus send the economy into a tailspin.

But the anticipated move is not expected to apply to some US$360 billion in Chinese imports subject to tariffs as high as 25 per cent as administration hardliners push to maintain pressure on Beijing.

The coronavirus scare has an unexpected sting in its tail—a fishtailing of the world’s economy that would find yourself during a much-dreaded recession.

And if you thought India was already within the choke-hold of a recession, you’re wrong. An economy is taken into account to be in recession if it’s two quarters of decline, that is, growth contracting below zero per cent. India, so far, has only been during a ‘slowdown’ mode, its high rate of growth for several years that averaged around 7-8 per cent ‘slowing’ right down to 4 per cent. But, will the country be ready to save itself from the new scourge of the virus’s aftermath?

With the worldwide economy already on the rear foot thanks to all-round sluggishness, the US-China trade wars and more since last year, the coronavirus pandemic now has ensured that it’s set for a tumble this year. The United Nations Conference on Trade and Development (UNCTAD) says global growth, which was already low at 2.9 per cent last year, could fall below 2 per cent this year. Moody’s, the rating agency, revised its global GDP projection to only 2.1 per cent, while Rabobank, a Dutch multinational banking and financial company, put it even lower at 1.6 per cent. If you pass the Washington-headquartered body of banks, the Institute for International Finance (IIF), it might be even less at only one per cent.

“A global recession is now about certain,” Rabobank declared on Tuesday.
With the virus causing a domino-effect on the worldwide supply chain of factories, with trade routes getting suspended and business activities across economic hubs round the world slowing down, recession is now a significant worry. All continents except Antarctica have reported cases of Covid-19 over the past two months. it’s now clear that the shock will…dampen domestic demand globally, which can affect a good range of non-traded activities across countries and regions simultaneously, Moody’s said during a note. Experts indicate that recession might be a reality for several countries soon, especially for those seeing suspension of business activities. India’s stock markets have seen severe volatility within the past few days—the Sensex lost 5 per cent of its value just on the day before Holi, the most important single-day fall since the 2008 financial crisis, the last time the planet bore the brunt of a recession. Monday’s carnage at the bourses, which took its cues from the crash in petroleum prices to a 30-year-low, caught in a frenzy 6.4 lakh crore rupees of investor money. The UNCTAD assumes India will have a trade loss of 348 million dollars thanks to the corona outbreak, but this was before the fresh spate of cases spiralled to a replacement high, presently standing at 60 as of Wednesday afternoon. However, there are many that see the bright side within the cloud. ICICI Securities say this volatile market scenario is “an opportunity to shop for equities.” Adds Rumki Majumdar, an economist with Deloitte India, “India’s exposure to the worldwide economy is low due to the country’s limited presence within the global supply chain.” actually , many experts have acknowledged that the crash in oil price will only help India’s economy, as 80 per cent of the nation’s petroleum requirements are imported. It could actively even help in bringing down the fiscal deficit, during a best-case scenario. While many are hopeful that albeit a recession hits major economies that are a part of the worldwide supply chain, it might likely be short-lived. However, with cases of infections rising by the hour and therefore the economy world over getting the hard end of the stick, India should had best to take care . “If the outbreak is protracted beyond March, it’ll start hurting [India’s] domestic industries,” warns Majumdar. “The Indian banking sector may come under further pressure if it’s exposure to industries with high dependence on China. Falling stock exchange prices will increase the financial sector’s woes.” Supply shortages due to production cuts are likely to push up inflation, too. As economist Neil Shearing acknowledged earlier in the week , “There’s an honest chance that the ‘worst case scenario’ quickly becomes the foremost likely scenario.”