Stocks slide after Trump warns China: 'I am a Tariff Man'
By Jordan Fabian - 12/04/18 10:14 AM EST
Stocks fell dramatically on Tuesday after President Trump on Tuesday declared himself a “Tariff Man,†stressing he will not hesitate to raise tariffs on China if it does not agree to fundamentally change its trade practices.
The Dow Jones Industrial Average closed down nearly 800 points and the Standard & Poor's 500 index dropped more than 3 percent on the day, a sharply negative turn one day after markets were jolted by news that Trump reached a trade ceasefire with Chinese President Xi Jinping.
“Investors are spooked by President’s Trump handling of the trade war with China,†Mark Zandi, chief economist at Moody's Analytics, wrote in an email. “Despite the arrangement Trump and Xi agreed to last week in Argentina, they are nervous that the negotiations will go off the rails and the trade war will escalate.â€
Zandi cited higher interest rates, lower corporate earnings growth and too-high valuations as other factors driving Wall Street fears.
“It is hard to see the bull market resuming as long as the president continues to pursue his trade war,†he added.
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https://thehill.com/homenews/administration/419613-trump-warns-china-i-am-a-tariff-man