According to The Hill, on Monday morning stock markets plunged when Trump said he would raise tariffs on $200 billion in Chinese goods in order to derail a trade deal. He also threatened to set new tariffs for another $325 billion in goods.
He tweeted: “The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!”
In response, the Dow Jones fell over 400 points, or 1.6 percent. The S&P 500 dropped almost 45 points, or 1.5 percent, and the NASDAQ fell 145 points, or 1.8 percent.
This was a quick turnaround from Friday, when Vice President Mike Pence said that Trump was “very hopeful” about reaching a deal with China in the near future. In response, the markets surged. When the markets closed on Friday, the Dow Jones Industrial Average closed at a near-all-time high.
Warren Buffet warned that a trade war between the U.S. and China would cause chaos in the global economy.
“If we actually have a trade war, it would be bad for the whole world, and could be very bad, depending on the extent of the war,” Buffett said.
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