Stocks surrendered their gains Friday after Bloomberg reported President Donald Trump instructed his administration to follow through with tariffs on roughly $200 billion worth of Chinese imports, despite a fresh round of trade negotiations between the world’s largest economies having been proposed days earlier.
Here’s the scoreboard:
Dow Jones industrial average: 26,104.82 −41.17 (-0.16%)
S&P 500: 2,901.35 −2.83 (-0.097%)
Nasdaq Composite: 7,990.10 −23.61 (-0.29%)
Shares of large-cap industrial stocks like Caterpillar (-0.6%) fell following the report. Boeing(+0.4%) pared gains after trading up more than 1%. Treasury yields jumped. Offshore, the Chinese yuan sank 0.36% against the dollar.
Another round of US tariffs would bring the running total of targeted Chinese products to $250 billion, and is poised to affect consumers more than the levies already enacted.
Beijing, which was swift to counter Trump’s first two rounds of tariffs, would almost certainly retaliate against the action. While China doesn’t import enough from the US to match the duties dollar-for-dollar, it could increase tariff rates or use qualitative measures like creating administrative headaches for American companies.