U.S. stock futures fell sharply on Tuesday, as global equities careened lower on a fresh threat by President Donald Trump to slap up to $400 billion more in tariffs on China goods, the latest escalation in a worrying trade dispute.
Dow Jones Industrial Average futures slid 391 points, or 1.6%, to 24,627, while S&P 500 futures dropped 37.95 points, or 1.4%, to 2,74175. Nasdaq-100 futures lost 96.75 points, or 1.3%, to 7,179.
After Beijing’s retaliation against U.S. planned tariffs on $50 billion worth of Chinese imports, Trump asked U.S. trade representative Robert Lighthizer late Monday to identify $200 billion more in Chinese products that could be subject to tariffs of 10%. The U.S. president also threatened to find $200 billion more worth of goods if China tried to retaliate against those additional tariffs.
A spokesperson from China’s Ministry of Commerce said China will have no choice but to take comprehensive measures in response to the U.S.’s trade moves, the state-run Xinhua News Agency reported.