Dow drops, giving up big earlier gain after Trump says US adding more tariffs on China

Stocks slashed gains on Thursday after President Donald Trump said the U.S. would impose an additional 10% tariff on Chinese imports to the U.S.

The Dow Jones Industrial Average traded 300 points lower after rallying as much as 311 points earlier in the day. The S&P 500 was down 1.1%. The Nasdaq Composite traded down 1.1% after jumping more than 1.6%…

“Trade has always been an issue hanging over the market and whether or not we see an escalation, said Quincy Krosby, chief market strategist at Prudential Financial. “The fact is we’ll surely get a reaction from Beijing.”

“There were concerns that after the [Federal Reserve] meeting and as earnings season began to wind down, the market would be more susceptible to volatility,” Krosby said.

Trump said in a series of tweets the tariff will be imposed on $300 billion worth of Chinese goods. The levy will take effect Sept. 1.

Donald J. Trump

@realDonaldTrump

…buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die! Trade talks are continuing, and…

Donald J. Trump

@realDonaldTrump

…during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%…

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Trump’s tweets came after a U.S. delegation met with Chinese trade officials earlier this week. Those were the first in-person trade talks between China and the U.S. since both countries reached a truce on the situation…

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