WASHINGTON (WBAP/KLIF News) – The U.S. stock market went into a tailspin at open Monday after China announced its raising tariffs on $60 billion on U.S. goods, with additional rates of 20% and 25%.
The DOW closed down more than 600 points, Nasdaq closed down 270 and the S&P 500 closed down 70.
China said the hike is in reaction to the Trump administration raising tariff’s on $200 billion in Chinese imports from 10% to 25% last Friday.
Some of the U.S. products that will be effected by China’s tariff hike include cotton, machinery to optical instruments like telescopes.
The hike is expected to take effect June 1st.
It’s the latest move in an ongoing trade war between the two countries. President Trump issued several tweets about the situation a few hours before China announced the retaliatory tariffs.
I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!
— Donald J. Trump (@realDonaldTrump) May 13, 2019
..There will be nobody left in China to do business with. Very bad for China, very good for USA! But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse!
— Donald J. Trump (@realDonaldTrump) May 13, 2019
Chinese negotiators met with officials in Washington D.C. late last week in an effort to reach an agreement.
Some economists worry that the trade war with have a negative reaction to the U.S. and Chinese economy and slow global growth. It’s a situation that negotiators on both sides continue to try and work on.
Appearing on Fox News Sunday, President Trump’s top economic adviser Larry Kudlow said there was a possibility that Trump may meet with President XI Jinping at the G20 summit in Japan next month.
Copyright 2019. WBAP/KLIF News. All Rights Reserved.
