Even as we continue to see developments around the trade war, with the Donald Trump administration imposing heavy tariffs on Chinese imports, CLSA\u2019s Chris Wood says that the tariff war escalation will impact the auto industry. \u201cOne obvious threat would be Trump\u2019s threat, if followed through on to impose 20-25% tariff on global auto imports. Such a move would almost certainly trigger retaliation in the auto industry and cause renewed focus on the peaking out of globalisation and retreat from Pax Americana,\u201d Chris Wood said in CLSA\u2019s Greed and Fear report. Notably, \u00a0earlier this week, the US administration threatened to impose 10% tariffs on another $200bn (\u00a3151bn) worth of Chinese imports, which was immediately met by Beijing\u2019s pledge to take \u201cfirm and forceful measures\u201d to retaliate. While the emerging markets continue to feel the pressure of a rising US Dollar, Wood noted recently that conditions are becoming difficult for emerging market (EM) investors. Chris Wood said that US monetary tightening expectations have increased. \u201cThe dovish stance of ECB (European Central Bank) and Bank of Japan continues,\u201d he noted. In the same report, Chris Wood, equity strategist at CLSA notes that MSCI emerging markets is negatively correlated with US Dollar. \u00a0\u00a0 However, Chris Wood notes that CLSA is overweight on the emerging markets. Taking stock of India\u2019s risks, Wood notes that HNI investors selling off equities poses risk. \u201cOne risk for Indian equities is that high net worth investors sell stocks to purchase real estate as evidence grows that the residential property cycle has turned up,\u201d he said recently. Asian shares were higher on Friday following gains on Wall Street overnight, as concerns over an escalating U.S. trade war with China took a breather, Reuters reported. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, building on a 0.6 percent rise on Thursday, after U.S. stocks ended the day higher. Australian shares also gained 0.2 percent, while Japan's Nikkei stock index was 1.2 percent higher.