The aftereffects of the trade war between US and China have started to kick in, with the US goods trade deficit with China hitting a five-year low in March. This could just escalate trade tensions between the two countries.

According to data released by the Commerce Department, the figure went down to 16.2 percent to seasonally unadjusted $20.7 billion, the lowest since March 2014. Meanwhile, the overall trade deficit has risen by 1.5 percent to touch $50 billion. Economists’ expectations were for $50.2 billion.

Inflation-adjusted goods trade deficit for March grew by $0.5 billion to reach $82.1 billion. As a result of this data release, the US dollar index traded lower against major currencies and US stocks also took a bearish turn.