US stocks fall after China slaps 125% tariff on US imports, escalating trade war

US stocks fell connected Friday arsenic China struck backmost astatine President Trump’s latest tariff pinch a full 125% taxation — further escalating waste and acquisition tensions betwixt nan 2 nations.

The Dow Jones Industrial Average mislaid 254 points, aliases 0.6%, aft plummeting 1,014.79 nan time before.

The scale has been connected a chaotic thrust complete nan past week arsenic markets struggle to sorb back-and-forth waste and acquisition warfare news, plunging much than 4,000 points aft Trump revealed his alleged “reciprocal” tariffs past Wednesday, past recovering much than 1,500 points this week aft he announced a 90-day region connected most of his harsher tariffs.

A trader useful connected nan level of nan New York Stock Exchange connected Thursday, erstwhile nan Dow plunged much 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 3rd retaliatory effort against nan US, aft Trump astir precocious announced a 125% taxation connected nan nation, blaming Beijing’s “lack of respect.”

The White House later confirmed nan full tariff connected China was 145%, aft stacking connected apical of earlier levies.

During a property convention connected Friday, a spokesperson for China’s Ministry of Commerce said nan Trump administration’s attack to tariffs was a “numbers crippled which has nary applicable value connected economics.”

President Trump has raised nan tariffs connected China to 145%, blaming nan nation’s “lack of respect.” AFP via Getty Images

“It’s go a joke,” nan spokesperson continued successful a excavation astatine Trump.

However, China besides offered a mini glimmer of dream for investors fearful nan waste and acquisition warfare could reheat inflation, hinting it’s not looking to raise rates again successful nan future.

“If nan US continues to enforce tariffs connected Chinese equipment exported to nan US, China will disregard it,” nan country’s finance ministry said.