The Dow Jones Industrial Average recoiled after Beijing poured gasoline on the US-China trade war – and then lit a match. | Source: Spencer Platt / Getty Images / AFP
By CCN Markets: China’s government poured gasoline on the trade war negotiations yesterday when it threatened retaliation against President Trump’s scheduled September tariffs. On Friday, Beijing lit a match, leaving the Dow Jones and broader stock market reeling.
Dow Tumbles as China Backs Up Threats With Action
All of Wall Street’s major indices endured major setbacks at the opening bell. The Dow Jones Industrial Average fell 133.77 points or 0.51% to 26,118.47.
The S&P 500 slid 13.13 points or 0.45% to 2,909.89. Nine of 11 primary sectors dipped into the red, led by energy’s 1.45% pullback.
The Nasdaq suffered the worst decline, falling 45.03 points or 0.56% to 7,946.56.
China Smacks US With New Tariffs, Wants Trump to ‘Feel the Pain’
Stock futures recoiled in pre-market trading after China dropped a bomb on already-tense trade negotiations, setting the Dow up for a brutal end to an otherwise-excellent week.
Beijing revealed that it would impose new tariffs on $75 billion worth of US imports. The duties, which range from 5% to 10%, target US goods like soybeans, auto parts, and oil.
Tellingly, the first batch of new tariffs will take effect on September 1, the same date the Trump administration plans to impose a new round of tariffs on Chinese goods.
“In response to the measures by the US, China was forced to take countermeasures,” the Chinese State Council said in the announcement,