US Stock markets fell abruptly on the very first day on Tuesday after 15% trade penalty was imposed on $300 billion worth of goods imported from China on Sunday, September 1
The Dow Jones Industrial Average fell by roughly 285.26 points, with the S&P 500 declining by 20.19 points and the Nasdaq Composite by 88.72 points, marking yet another day of dramatic falls for the principal US stock indices.
The latest trade penalty is part of the punishment announced on Twitter by US President Donald Trump barely a week ago, which in turn comes on the back of a Chinese tariff imposition on $75 billion of imports from the US, which again was a part of a response to an earlier round of US trade barriers against Chinese goods.
While this is not the end of the US-China Trade war as further incremental trade penalties against Beijing are in pipeline, likely to be imposed on October 1.
Meanwhile retail stocks fell broadly across the board, as did stocks of computer chip makers like Apple and Nvidia, which depend on China-based factories for their raw materials supply.
The US-China Trade War has hit both the economies hard. According to data from China’s National Bureau of Statistics (NBS), the country’s GDP only grew by 6.2% year-on-year in the second quarter, the slowest pace in the last 27 years.