United States

Dow plunges as China hikes tariffs on US goods

An escalating trade war between the US and China threw the stock market into chaos early Monday. The Dow Jones industrial average plunged more than 500 points after China said it will hike tariffs on $60 billion worth of US goods — a tit-for-tat response to President Donald Trump’s hike of tariffs on $200 billion in Chinese goods last week. China said it will impose tariffs on its US imports of up to 25 percent on June 1. Many of the items, which had been subject to 10 percent tariffs, affected the US agricultural industry. Market indexes were all down after the open, with the S&P 500 and tech-weighted Nasdaq down 1.7 percent and 2.2 percent, respectively. The tumble follows last week’s market rout, in which the Dow tumbled 562 ...