The Dow Jones Industrial Average ended Friday down more than 600 points, about 2.4%, capping a daylong slide that started after President Trump directed U.S. companies to find alternatives to Chinese suppliers.
The broader S&P 500 finished down 76 points, or 2.6%, while the tech-heavy Nasdaq fell about 240 points, or 3%.
The Dow’s decline followed Trump’s tweets almost immediately, more than a week after the blue-chip average slid 800 points in the largest single-day drop this year. Stocks had partially rebounded over the last week following strong earnings reports from major retailers.
Beijing announced retaliatory tariffs against the United States Friday morning. Trump responded and “ordered” U.S.-based companies to begin searching for new suppliers outside of China. Trump also said he would issue a more official response to Beijing’s new tariffs later, though he had not done so by market close.
The new Chinese tariffs will cover $75 billion worth of U.S. goods, beginning at 5% on Sept. 1 and increasing to 10% on Dec. 15. Beijing is also placing a 25% tariffs on automobiles and a 5% tariff on auto parts. Experts have predicted a 1-in-3 chance of an economic downturn in the next year as consumers and businesses feel the effects of the trade war.
