Markets dip, China warns backlash over tariffs

WASHINGTON—President Donald Trump’s decision to impose $50 billion worth of tariffs on Chinese imports spooked markets Thursday. The Dow Jones industrial average plunged 700 points but showed signs of improvement Friday morning. International exchanges dipped, too. After Trump’s announcement, Hong Kong’s Hang Seng Index dropped 2.5 percent, and in Japan, the Nikkei 225 stock average slumped 4.5 percent. European markets also reacted poorly with the Stoxx Europe 600 dropping 1.1 percent Thursday. China’s Commerce Ministry said Friday it would propose new trade sanctions on U.S.-made products in response to the tariffs. Trump said he needed to impose the hefty fees on China because of the large trade deficit between the nations and because a report found China had stolen intellectual property that could stifle U.S. innovation. China’s plan would impose a 15 percent tax on U.S. exports of 120 products, including fresh and dried fruits, nuts, wine, and steel pipes. China suggested a new a tax of 25 percent on U.S. pork products and recycled aluminum. In total, the new sanctions would be worth about $3 billion if implemented.