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May 6, 2019, 11:49 AM UTC
By Lucy Bayly
Global markets plunged overnight after crucial trade talks with China appeared to collapse, renewing fears of an all-out trade war between the world’s two largest economies.
Futures on the Dow Jones Industrial Average fell by over 500 points in premarket trading early Monday, with the S&P 500 and Nasdaq each sliding by 2 percent before markets opened. Chinese markets tanked by 6 percent.
The market turmoil began Sunday after President Donald Trump slammed China in a surprise early morning tweet that said he would slap tariffs on almost all imported goods starting Friday.
May 6, 201900:28
“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump tweeted. “The 10% will go up to 25% on Friday. 325 Billions Dollars….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%.”
Trump doubled down on that message on Monday, tweeting, “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!”
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
Chinese officials have threatened to completely withdraw from upcoming trade negotiations set for this week, according to CNBC. A 100-person delegation led by Chinese Vice Premier Liu He was scheduled to