The Dow Jones Industrial Average fell more than 600 points on Monday, as stocks skidded when China raised import duties on U.S. pork, apples and other products, stoking fears of a trade war.
Tyson Foods, one of the nation’s largest pork producers, is among the biggest losers on Wall Street this morning.
China raised import duties on a $3billion list of U.S. goods in response to a new U.S. tariffs on imported steel and aluminum. Meat producer Tyson Foods slumped $3.37, or 4.6 per cent, to $69.82 while Hormel and Pilgrim’s Pride took smaller losses.
American farm exports to China in 2017 totaled nearly $20billion, including $1.1billion of pork products.
The Dow Jones Industrial Average fell more than 600 points on Monday as China instituted new import duties on American goods
Trader Tommy Kalikas works on the floor of the New York Stock Exchange on Monday as stocks fall amid new Chinese import duties
A bigger dispute looms over Trump’s approval of possible higher duties on Chinese goods. Investors are worried that increasing tensions over trade could slow down global commerce and hurt corporate profits.
China’s latest step is just one point of contention between China and Washington, Europe and Japan over a state-led economic model they complain hampers market access, protects Chinese companies and subsidizes exports in violation of Beijing’s free-trade commitments.
The price of gold climbed 0.8 per cent, to $1,337.80 an ounce and silver jumped 29 cents, or 1.7 percent, to $16.55 an ounce as some investors took money out of stocks and looked for safer investments. President Donald Trump is separately preparing to impose tariffs of more than $50 billion targeting ‘largely high-technology’ Chinese products.
Tyson Foods, one of the nation’s largest pork producers, fell nearly 6 per cent in morning tradings thanks to the new duties
China is now imposing a 25 per cent duty on American pork products. Hormell also saw a drop in stock Monday morning
American farm exports to China in 2017 totaled nearly $20billion, including $1.1billion of pork products. Above, Pilgrim’s Pride stock on Monday
At 8:33 a.m. ET, Dow e-minis were down 138 points, or 0.57 percent, with 33,657 contracts changing hands.
S&P 500 e-minis were down 11.75 points, or 0.44 percent, with 102,321 contracts traded.
Nasdaq 100 e-minis were down 54.25 points, or 0.82 percent, on volume of 39,975 contracts.
Hit by concerns about a possible trade war, rising interest rates and valuations in the technology sector, the S&P 500 and the Dow Jones Industrial Average posted their worst declines in more than two years in the quarter ended March.
A glance at US products affected by Chinese tariff hikes
Some goods on which the Chinese government raised tariffs Monday.
25 PERCENT TARIFFS
Most goods targeted for 25 percent tariffs are varieties of pork, for which China is the No. 3 American export market.
Fresh and chilled bone-in pork forelegs and hind legs, chilled whole and half hog heads, pork liver, chopped pork, other fresh and chilled pork
15 PERCENT TARIFFS
Chinese regulators also imposed 15 percent duties on apples, almonds and dozens of types of fruit
Apples, fresh or dried; coconut, fresh and dried; bananas, fresh or dried; pineapple; pomegranates; mangos; grapefruit; grapes; watermelon; cherries; strawberries; dried apricots
Brazil nuts, cashews, almond kernels, walnuts, macadamia nuts, pine nuts
Stainless steel and alloy pipe used for petroleum or natural gas, multiple diameters