When President Trump threatened tariffs against China on Sunday, Dow Jones Industrial Average futures promptly dropped 500 points. And, as expected, the Dow opened down 450 points on Monday.
Trump issued the warning in a Sunday tweet, saying that a 10 percent tariff China was paying on "$200 billion of other goods" would be raised to "25 percent on Friday." Other goods currently going untaxed would also see a 25 percent charge, Trump said, questionably suggesting that these new tariffs would continue America's "great economic results."
After Dow futures dropped as much as 550 points following the tweet, with CNBC attributing it to a loss of "recent optimism that the world’s two largest economies were close to a resolution to their trade battle." The market then opened down 450 points on Monday, but soon recovered to only be down 250 points from its Friday closing point.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The massive point drop likely reflected traders' sheer surprise at Trump's Sunday tweet. Trump said as recently as two days ago that China trade negotiations were going "very well," but then said in his Sunday tweet that they were happening "too slowly." As part of those trade talks, the Trump administration notably avoided discussing China's alleged human rights abuses against its Uighur Muslim minority.
-
Salted caramel and chocolate tart recipeThe Week Recommends Delicious dessert can be made with any biscuits you fancy
-
Meet Ireland’s new socialist presidentIn the Spotlight Landslide victory of former barrister and ‘outsider’ Catherine Connolly could ‘mark a turning point’ in anti-establishment politics
-
Should TV adverts reflect the nation?Talking Point Reform MP Sarah Pochin’s controversial comments on black and Asian actors in adverts expose a real divide on race and representation
-
Warner Bros. explores sale amid Paramount bidsSpeed Read The media giant, home to HBO and DC Studios, has received interest from multiple buying parties
-
Gold tops $4K per ounce, signaling financial uneaseSpeed Read Investors are worried about President Donald Trump’s trade war
-
Electronic Arts to go private in record $55B dealspeed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
New York court tosses Trump's $500M fraud fineSpeed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in IntelSpeed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to ChinaSpeed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with DisneySpeed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B dealSpeed Read Tesla has signed a deal to get its next-generation chips from Samsung
