The Dow Jones Industrial Average plunged 375 points, or 1.4 percent, in the opening hour of trading Thursday morning, amid fears that President Trump’s trade war with China is escalating.
The dip follows comments by Chinese Commerce Ministry spokesman Gao Feng, who said that trade negotiations would not continue until the U.S. corrects its “wrong actions.”
“If the United States wants to continue trade talks, they should show sincerity and correct their wrong actions. Negotiations can only continue on the basis of equality and mutual respect,” Feng said during a weekly briefing, according to multiple reports. {mosads}
Trump has imposed tariffs on $250 billion of Chinese imports and threatened tariffs on another $300 billion of imports.
China has countered with its own retaliatory tariffs, including raising the rates on $60 billion of U.S. exports to China, which will go into effect June 1.
Trump has also acted more aggressively against Chinese telecommunications giant Huawei and is mulling blacklisting Hikvision, a surveillance firm known for its role in the mass detention of Uighurs, a Muslim minority in China.
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