Dow Jone Plunges 700 point after China’s retaliation in Trade war

The Dow plunged by over 700 points at one stage before recovering to 458 points lower.

A global trade war is rippling through the markets today after China hit back against America’s tariffs on steel and aluminium by targeting imports of food, wine, steel and even ginseng. “On Monday China announced that it has implemented aforementioned tariffs on 128 types of US goods. Implementing the tariffs makes China’s response to Trump’s steel and aluminium tariffs official. We still expect a settlement in trade negotiations between the two nations.”

The former head of the Chamber of Commerce in Beijing, Joerg Wuttke, said: “They will do it Chinese acupuncture style, as they will use the needles into swing states, into agriculture, anything utterly painful for Trump’s constituency”.

A former US diplomat said China could retaliate by compromising US multinationals operating inside China, “ This could put US companies such as Apple, Microsoft Starbucks and GM in firing line.

“Now we have a trade deficit of $500billion a year, with intellectual property theft of another $300 billion”,  the US cannot lose a Trade war because it is already suffering from unfair trade conditions with China”, Donald Trump wrote on Twitter.

Just hours after Trump administration detailed 1, 333 Chinese products as possible targets of its won 25 percent duties, Beijing threatened to impose tariffs on $50bn in American imports escalating the economic war with Washington.

“China does not want a trade war because no one will emerge as a winner in a trade war” Wang Shouwen vice-minister of commerce said. “ But if someone insists on fighting a trade war, we will be there”.