Dow plunges more than 620 points as Trump escalates US-China trade war

1010 WINS Newsroom
August 23, 2019 - 4:06 pm

(AP Photo/Richard Drew)

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NEW YORK (1010 WINS/AP) -- The Dow plunged more than 620 points Friday, after President Donald Trump traded barbs with China and the Federal Reserve.

Stocks tumbled after Trump demanded that U.S. companies with operations in China consider moving them to other countries — including the U.S. — just hours after Beijing announced new tariffs on $75 billion in U.S. goods.

Trump also said he would respond to Beijing's latest tariff increase later Friday.

Trump also said he was "ordering" UPS, Federal Express and Amazon to block any deliveries from China of the powerful opioid drug fentanyl. The stocks of all three companies fell as traders tried to understand what the implications for them were.

The developments mark the latest escalation of an ongoing trade dispute. The U.S. has said it would impose 10% duties on the $300 billion of Chinese goods that were not already subject to tariffs in two steps, On Sept. 1 and Dec. 15. Early Friday China said it would retaliate with taxes on $75 billion of U.S. products along the same timeframe.

The broad sell-off wiped out all the market's gains this week, placing the S&P 500 on track for its fourth straight weekly loss.