Market Overview

Stocks Crash After Trump Threatens New Tariffs On $300B In Chinese Goods

Share:
Stocks Crash After Trump Threatens New Tariffs On $300B In Chinese Goods

Stocks took a big hit on Thursday afternoon after U.S. President Donald Trump said he will be implementing a new 10% tariff on the remaining $300 billion in Chinese goods not already included in existing U.S. tariffs.

In a series of tweets, Trump said U.S. representatives are having constructive trade talks with China but once again blamed China for backing out of a potential deal three months ago.

“More recently, China agreed to...buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!” Trump wrote.

Trump said the new tariffs will be implemented as negotiations continue, and he is optimistic a deal will be reached.

“We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!” he said.

The Federal Reserve cited “global developments” as one of the primary reasons for its interest rate cut on Wednesday. The prospect of new tariffs and potential retaliation from China certainly seems to have spooked investors.

Within minutes of Trump’s tweets, the Dow Jones Industrial Average plummeted from a 300-point gain to a 100-point loss. The SPDR S&P 500 ETF Trust (NYSE: SPY) also dipped into negative territory on the day.

Related Links:

Federal Reserve Issues First Rate Cut In 11 Years

US GDP Growth Hits 2.1% In Q2, Beating Forecasts

Photo credit: Sgt. Alicia Brand, Public Domain, via Wikimedia Commons

Posted-In: China Donald TrumpGovernment News Regulations Futures Global Markets Best of Benzinga

 

Related Articles (SPY)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Today's Pickup: Trucking Revenues Grew By Nearly $100 Billion In 2018

Myriad Genetics Shares Jump To 9-Month High On Insurance Coverage For Genetic Test