Trump Tweets, Stock Markets Plunge
President Donald Trump on Monday caused the stock markets plunged into a downward spiral after threatening to raise tariffs on billions in Chinese goods, possibly derailing a trade deal that was expected to be reached as early as this week.
“The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!” Trump tweeted Monday morning.
The unsettling prospect of renewed trade hostilities between the world’s two largest economies sent stock indices reeling on Monday.
The Dow Jones plunged more than 400 points or 1.6 percent, while the S&P 500 dropped nearly 45 points or 1.5 percent and the NASDAQ fell 145 points or 1.8 percent, the largest one-day market decline since January.
It was a dramatic and stomach-churning reversal from Friday, when Vice President Mike Pence told CNBC that the president was “very hopeful” about reaching a deal with China soon.
The markets finished up strongly on Friday, with the Dow Jones Industrial Average closing within a few hundred points of its all-time high, and the S&P 500 finishing within a point of the all-time high it reached late last month.
Trump roiled the waters Sunday by threatening to dramatically increase tariffs on $200 billion in Chinese goods and set new tariffs for an additional $325 billion in goods.
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!
— Donald J. Trump (@realDonaldTrump) May 6, 2019
It appears the market is about to tank.