The three major U.S. stock indexes sank on Wednesday as the White House moved to make good on President Trump’s threats to impose an additional $200 billion in tariffs on Chinese imports, dismissing the concerns of economists, corporate executives and GOP lawmakers.
The blue-chip Dow Jones industrial average dropped 0.53 percent in early New York trading, while the broader S&P 500 fell 0.4 percent and the tech-heavy Nasdaq slid 0.29 percent. The three widely-followed gauges, which gained steadily in 2017 amid bets that Trump and a Republican Congress would reduce taxes and trim government regulation, have all given up their highs as the president began wide-ranging trade disputes with both U.S. allies and competitors.
“The last thing America’s manufacturing workers need is an escalating trade war,” said Jay Timmons, head of the National Association of Manufacturers, which represents industrial companies with a combined payroll of more than 12 million people that contributes $2.25 trillion to the U.S. economy annually. “China cheats, and manufacturers want to see China held accountable, but more tariffs like these will punish America’s manufacturing workers and could undermine our hard-won gains thanks to tax and regulatory reform.”
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