China announced Monday that it would add tariffs on $60 billion of U.S. products after President Donald Trump raised tariffs on Chinese goods Friday, as the trade war ratcheted up with no trade deal in sight.
Wall Street had a rough day as the Dow Jones Industrial Average dropped 617 points, or 2.4 percent to 25,324. It's the market's worst trading session since Jan. 3. The S&P also dropped 2.4 percent to 2,811 and the Nasdaq dropped 3.4 percent to 7,647 in its biggest one-day loss of the year so far.
China's Ministry of Finance announced the new tariffs would range between 5 and 25 percent and be placed on more than 5,000 products. The tariffs are scheduled to take effect on June 1, giving both sides time to re-establish trade negotiations which broke down late last week in Washington.
Coffee, beef, salmon, flowers along with some fruits and vegetables are among the items being targeted by China's new tariffs.
President Trump took to Twitter Monday morning in an attempt to settle the markets and urge President Xi Jinping to sign a new trade deal.
"Their is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today. This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be completely avoided if you by from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!
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!" Trump wrote.
"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!" the president tweeted.
On Friday, the United States imposed tariffs on $200 billion worth of Chinese exports. The new tariffs were added after the U.S. accused China of backtracking on multiple commitments that had been made during recent trade negotiations.
China has been repeatedly criticized by Trump and other economists for what are deemed unfair trade practices - especially in matters dealing with intellectual property. China's Vice Premier Liu He arrived this week to join the trade negotiations being held in Washington as Beijing and the U.S. seek to bring the trade war to an end.