"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA," Trump said on Twitter.
China overnight said it would put tariffs of 5% and 10% on about $75 billion worth of US goods on Sept. 1 and Dec. 15 while a 25% levy will be imposed on American automobiles. Auto parts and components face a 5% tariff on Dec. 15, along with the cars. The levies follow Trump's plan to place tariffs on $300 million worth of Chinese goods in December.
All 11 sectors of the Standard & Poor's 500 lost ground, with all groups losing at least 1%. Eight of those lost more than 2% while all but one company in the Dow Jones Industrial Average ended lower.
Energy shares dropped nearly 3.4% to lead the selloff as crude-oil futures sank after the latest weekly US oil-rig count fell to a 19-month low. West Texas Intermediate lost 2.6% to $53.91 a barrel while international benchmark Brent slid almost 1.3% to $59.17.
Exxon Mobil (XOM) fell 3% while Chevron (CVX) slid 2.2%. Hess (HES) dropped 6.9%.
Tech shares fell 3.3% as Apple (AAPL) lost 4.6%, Intel (INTC) slid 3.9% and International Business Machines (IBM) retreated 3.5%.
Nike (NKE) lost 3.4%, dragging consumer discretionary shares almost 2.8% lower. McDonald's (MCD) fell nearly 2.2%, and Home Depot (HD) retreated 1.6%.
In company news, Foot Locker (FL) fell nearly 19% after second-quarter results missed expectations.
In economic news, new-home sales in July fell from the month before and missed expectations while inventories rose.
The Dow ended nearly 2.4% lower to finish out the week down almost 1%. The S&P 500 fell almost 2.6%, ending the five-day period 1.4% lower. The Nasdaq Composite dropped 3% to close out the week down 1.8%.
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