US stocks fall after China slaps 125% tariff on US imports, escalating trade war
By Taylor Herzlich
Scott Jennings gets into heated debate with Catherine Rampell over Trump's tariff agreementsScott Jennings gets into heated debate with Catherine Rampell over Trump's tariff agreements
US stocks fell on Friday as China struck back at President Trump’s latest tariff with a total 125% tax — further escalating trade tensions between the two nations.
The Dow Jones Industrial Average lost 254 points, or 0.6%, after plummeting 1,014.79 the day before.
The index has been on a wild ride over the past week as markets struggle to absorb back-and-forth trade war news, plunging more than 4,000 points after Trump revealed his so-called “reciprocal” tariffs last Wednesday, then recovering more than 1,500 points this week after he announced a 90-day pause on most of his harsher tariffs.
Trader works on floor of New York Stock Exchange.
A trader works on the floor of the New York Stock Exchange on Thursday, when the Dow plunged more than 1,000 points.
Getty Images
The S&P 500 and Nasdaq dipped 0.5% and 0.2%, respectively, Friday morning.
China’s move to hike tariffs to 125% marks its third retaliatory effort against the US, after Trump most recently announced a 125% tax on the nation, blaming Beijing’s “lack of respect.”
The White House later confirmed the total tariff on China was 145%, after stacking on top of earlier levies.
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During a press conference on Friday, a spokesperson for China’s Ministry of Commerce said the Trump administration’s approach to tariffs was a “numbers game which has no practical significance on economics.”
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US President Donald Trump speaking at the White House South Portico during a meeting with autoracing officials, with his arms spread out.
President Trump has raised the tariffs on China to 145%, blaming the nation’s “lack of respect.”
AFP via Getty Images
“It’s become a joke,” the spokesperson continued in a dig at Trump.
However, China also offered a small glimmer of hope for investors fearful the trade war could reheat inflation, hinting it’s not looking to raise rates again in the future.
“If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,” the country’s finance ministry said.
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