Equity benchmark Sensex fell over 300 points in early trade on Friday in line with global market sell-offs as investors panicked after the US decision to impose fresh tariffs on Chinese goods.The trade war tensions between the US and China along with unabated foreign fund outflows weighed heavily on the market sentiments, traders said.

US President Donald Trump’s decision to impose new tariffs on Chinese goods triggered fresh tension among investors over the trade battle between the two largest economies.

Trump on Thursday announced that the US will impose a 10 per cent levy on USD 300 billion in Chinese goods. The new tariffs is expected to go into effect from September 1.

Tracking tepid global market trend, the 30 share index was trading 333.32 points, or 0.90 per cent, lower at 36,685.00. Similarly, the 50 share Nifty slipped 105.15 points, or 0.96 per cent to 10,874.85.

In the Sensex pack, Hero Moto Corp emerged as the biggest loser with a slide of 2.78 per cent, followed by Vedanta, ONGC, Bajaj Finance, HCL Tech, Tata Steel.

Foreign investors sold shares worth Rs 1,056.55 crore on a net basis on Thursday, as per provisional data with stock exchanges.Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading lower in their respective early sessions.Wall Street stocks finished lower on Thursday after announcement of a new round of tariffs on Chinese goods.