Global Stocks Slump As Trump Steps Up Trade War With China

tariffs on products

The U.S. government said it was readying new tariffs on $200 billion worth of Chinese goods.

All these products will be charged an additional 10% tariff. The Trump administration released a list including fruit and vegetables, handbags and baseball gloves.

China's currency, the yuan, slid about 0.5% against the dollar. The Shanghai Composite fell 1.8% and Hong Kong's Hang Seng was down 1.3%. Markets all over the world were down. Dow futures were pointing 1% lower, Japan's Nikkei closed down 1.2% and Major European indexes dropped more than 1% in early trading.

Shocked by the latest U.S. tariffs, Beijing Seeks retaliatory action.

As America begins the process of imposing 10% tariffs on thousands more products, China has pledged to retaliate against U.S. tariffs in “equal scale and equal strength.”

The escalation of this trade dispute could cause a chain reaction of negative events around the world. Global financial markets are becoming more unpredictable as the Trump administration's trade war with China continues.