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Trump threatens 10% tariffs on China starting Sept. 1

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Posted at 11:57 AM, Aug 01, 2019
and last updated 2019-08-01 18:33:23-04

WASHINGTON (AP) — President Donald Trump says the U.S. will apply a new tariff of 10% on about $300 billion worth of products from China on Sept. 1.

Trump tweeted Thursday amid slow-moving talks with China that negotiations will continue. But he blamed China for not following through on stopping the sale of fentanyl to the United States or purchasing farm goods in large quantities.

The U.S. has already applied tariffs of 25% on $250 billion worth of goods from China. China retaliated with tariffs on $110 billion in American goods, including agricultural products, in a direct shot at Trump supporters in the U.S. farm belt.

Stocks dropped sharply on Wall Street and investors snapped up bonds after President Donald Trump escalated his trade battle with China. The Dow Jones Industrial Average went from a gain of more than 250 to a loss of 179.

Trump said in a tweet that the U.S. would place a 10% tariff on $300 billion in Chinese imports as of September 1 following the conclusion of the latest round of slow-moving trade talks.

Companies that rely heavily on sales to China took the brunt of the selling. Apple quickly went from a gain of 1.4% to a loss of 1.4%.

Bond prices spiked as traders sought safety. The yield on the 10-year Treasury dropped to 1.88%, the lowest it's been since the 2016 election.

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