An escalating trade war between the US and China threw the stock market into chaos early Monday.
The Dow Jones industrial average plunged more than 600 points after China said it will hike tariffs on $60 billion worth of US goods — a tit-for-tat response to President Donald Trump’s hike of tariffs on $200 billion in Chinese goods last week.
China said it will impose tariffs on its US imports of to up to 25 percent on June 1. Many of the items, which had been subject to 10 percent tariffs, affected the US agricultural industry.
The Dow was recently off 632.62 points, or 2.4 percent, at 25,309.75. Market indexes were all down sharply as of 11:38 am ET, with the S&P 500 and tech-weighted Nasdaq plunging 2.4 percent and 3.2 percent, respectively.
American businesses and consumers will pay more for many Chinese imports after the U.S. increased tariffs on $200 billion worth of goods Thursday night. There is now a 25 percent tariff on Chinese products worth a total of $250 billion. The Trump administration raised tariffs in the middle of the trade talks that continue today in Washington.