Stock futures fall as U.S. prepares $200B in tariffs on Chinese goods
US preparing additional tariffs of up to $200B of Chinese imports
FOX Business’ Edward Lawrence reports that the Trump administration is pursuing a new set of $200 billion tariffs on Chinese goods.
The U.S. is pursuing a new set of tariffs that would hit $200 billion in Chinese goods, according to senior administration officials.
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Dow Jones futures fell by 0.71%. The S&P 500 dropped 0.64% and the Nasdaq Composite was down 0.80%.
In a list published late Tuesday, after the markets had closed for the day, the U.S. Trade Representative said the 10% tariffs would target a variety of products imported from China, including clothing, baseball gloves, bicycles, refrigerators and seafood.
The additional U.S. tariffs, which will go through a two-month approval process including a public hearing, come after China retaliated in a tit-for-tat trade skirmish last week.
Asian markets responded much the same way.
China’s Shanghai Composite Index dropped 1.6%.
Hong Kong's Hang Seng slid 1.5%.
Japan's Nikkei dropped more than 2%.
Before the tariff news was reported, stocks rose Tuesday, with the Dow recording a fourth consecutive day of gains as traders continued to focus on the strong economy with trade tensions taking a backseat.
The Dow Jones Industrial Average rallied 143.07 points to 24,919.66. The S&P 500 climbed 9.67 points to 2,793.84. The Nasdaq Composite added three points to close at 7,759.20.
|I:DJI||DOW JONES AVERAGES||24919.66||+143.07||+0.58%|
|I:COMP||NASDAQ COMPOSITE INDEX||7759.1978||+3.00||+0.04%|
On Wednesday, investors will get a look at the first inflation-related report of the week with the latest on producer prices.
Data on wholesale trade will also be released.
Traders are looking ahead to the end of the week and the start of the earnings season for banks with results scheduled from Citigroup, JPMorgan Chase and Wells Fargo.
FOX Business’ Leia Klingel, Matthew Rocco and Edward Lawrence contributed to this article.
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