Mumbai, Sep 4 (TIWN) The ongoing US-China trade war is headed for further escalation, global ratings firm Moody's said on Wednesday.

“Of the three plausible scenarios for US-China trade tensions, the risk of a ‘hardened stance’ scenario has increased,” Moody’s said in a statement and added that any further deterioration in tensions could serve as a potential catalyst for a severe downturn.  “Our ‘significant softening’ scenario is less likely than before and therefore we have reduced the probability of this scenario to just 10 per cent,” it added.