President Donald Trump late Tuesday released a list of $200 billion worth of Chinese goods subject to a 10% tariff, escalating the China trade war. Dow futures, along with S&P 500 futures and Nasdaq futures, fell sharply after hours. Dow Jones stocks Apple (AAPL), Boeing (BA) and Caterpillar (CAT) retreated, as well as Tesla (TSLA), NXP Semiconductors (NXPI) and other China-tied stocks.
President Trump imposed tariffs of 25% on $34 billion in Chinese goods on Friday, with Beijing immediately retaliating on an equal amount of U.S. goods. The U.S. is set to roll out tariffs on $16 billion more in Chinese wares in a couple of weeks. Just before the U.S.-China trade war got underway, Trump said he was ready to impose tariffs on an additional $200 billion in Chinese goods, and more beyond that.
The new tariffs could go into effect after Aug. 30, the U.S. Trade Representative's office said in a statement late Tuesday.
Dow Futures Retreat
The Dow Jones, S&P 500 index and Nasdaq composite rose modestly in Tuesday's stock market session. In late trading, Dow futures fell 1.1% vs. fair value. S&P 500 futures slid 1%. Nasdaq 100 futures retreated 1.2%.
Apple stock fell 0.9%, Boeing stock 1.5% and Caterpillar 1.3%. The Dow Jones components are not subject to current tariffs but could be at risk from an escalating China trade war.
Tesla, which announced plans for a Shanghai plant on Tuesday, sank 1.7%. NXP Semiconductors fell 1.9%. Chinese regulators have held up NXP's takeover by Qualcomm (QCOM).
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