Wall Street Slides as Trump Announces New China Tariffs
NEW YORK – Stock market indices tumbled Friday after President Donald Trump announced plans to impose additional tariffs on Chinese goods, escalating a trade war that has rattled global markets.The S&P 500 closed down 2.7%, the Dow Jones Industrial Average fell 1.90%,and the NASDAQ Composite dropped 3.56% – marking the worst day for the New York Stock Exchange as April. The declines reversed a morning trend that had indicated a slight increase.
The renewed tensions stem from Trump’s decision to levy a 100% tariff on approximately $300 billion worth of Chinese products, building on previous tariffs totaling 145% imposed in april. China swiftly retaliated wiht import taxes of 125% on American products, effectively creating a trade blockade. While negotiations led to reductions – U.S. tariffs lowered to 30% and Chinese tariffs to 10% - a fragile truce established to allow for further discussions has now been broken.
Disagreements persist on key issues including U.S. access to Chinese rare earths, American restrictions on China’s import of advanced computer chips, sales of U.S. soybeans, and reciprocal port duties. A previous agreement to maintain a trade truce was set to expire November 10.
President Trump and Chinese President Xi Jinping have held three conversations this year, the most recent in September described as “very productive,” but have yet to bridge the divide.
