Stocks plummeted again Friday after China announced new tariffs on U.S. goods, intensifying fears that President Donald Trump’s trade policies could trigger a global trade war and economic downturn.
The Dow Jones Industrial Average dropped more than 1,500 points, or 4%, following a 1,679-point decline Thursday. The S&P 500 fell 5% after losing 4.8% the previous day and is now down more than 15% from its recent high.
The Nasdaq Composite, which includes many tech companies that rely on Chinese manufacturing and sales, slid 4%. If it closes at that level, the index would be 21% below its December peak — meeting Wall Street’s definition of a bear market.
China’s Commerce Ministry said Friday it would impose a 34% tariff on all U.S. products, matching the duties Trump announced Wednesday on Chinese imports.
Tech stocks were among the hardest hit. Apple, maker of the iPhone, fell more than 4%, extending its weekly loss to 10%. Nvidia, a leader in artificial intelligence, dropped 7%, while Tesla sank 9%. All three companies have significant exposure to China and were sharply affected by Beijing’s retaliatory measures.
