DOW drops almost 460 points on news of China tariffs & Trump slamming Amazon

The Dow Jones Industrial Average closed 458 points down, as Beijing slapped tariffs on US imports in retaliation for US steel and aluminum tariffs and President Donald Trump blasted online retail giant Amazon.

On Monday, Beijing imposed a 15 percent duty on 127 US products, as well as a 25 percent tariff on pork, in retaliation for Trump’s recent tariffs on Chinese exports.

“China and the United States are the world’s two biggest economies, and cooperation is the only correct choice,” the Chinese Ministry of Commerce said announcing the tariffs, adding that it hoped the US would rescind its tariff decision “as quickly as possible.”

Meanwhile, Amazon Inc. shares took a nearly 6 percent dive after Trump continued criticizing the company. On Friday, the president blasted Amazon for not paying federal taxes and benefiting from cheap US Postal Service shipping rates. “This will be changed,” he tweeted on Monday.

Trump also said the Washington Post, owned by Amazon CEO Jeff Bezos, should register as a lobbyist. The newspaper has been waveringly critical of Trump since the 2016 election campaign.

“If a trade war were initiated by the US, China would fight to the end to defend its own legitimate interests with all necessary measures,” it added. China strongly opposes what it described as a “typical unilateral trade protectionist action”taken by the Trump administration on Thursday. It said the US action will “directly harm the interests of US consumers, companies, and financial markets.”

The embassy urged the US to “cease and desist, make conscious decisions and avoid placing China-US trade relations in danger,” as it could “end up hurting itself.”

The White House said the Section 301 trade action is aimed at reining in intellectual property theft. In targeting over 100 types of Chinese goods, the US plans to offset what it says is the economic damage caused by intellectual property theft by China. However, the move could spark a trade war, impacting both businesses and consumers.

 

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