Markets Dip After Trump Accuses of China of Trade Violation
President Donald Trump on Friday said that China has “totally violated its” preliminary trade agreement with the United States, and suggested he would take action in response.
The Dow Jones Industrials lost 61.63 points to pause for noon at 42,154.10.
The S&P 500 slid 23.4 points to 5,888.77.
The NASDAQ Composite weakened 122.34 points to 19,053.33.
“So much for being Mr. NICE GUY!” Trump wrote in a social media post that said China had reneged on a deal that paused retaliatory tariffs between that country and the U.S.
U.S. Trade Representative Jamieson Greer, in an interview Friday morning, echoed Trump’s allegation, saying “we’re very concerned with” China’s purported non-compliance with the temporary trade deal.
The “United States did exactly what it was supposed to do, and the Chinese are slow rolling their compliance,” said Greer.
He called that “completely unacceptable and has to be addressed.”
For the week, the S&P 500 has advanced 1.5%, while the 30-stock Dow is up 1%. The tech-heavy NASDAQ has advanced 1.9%.
Among stocks of note, Gap faltered $5.54, or 19.8%, to $22.41.
Legal concerns hit a boiling point after the Court of International Trade on Wednesday night halted the majority of Trump’s tariffs. But an appeals court granted a stay on Thursday afternoon, allowing the duties to remain in place until next week.
The Trump administration considered using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, according to The Wall Street Journal.
The legal battle around tariffs offers the latest dose of uncertainty for what was an already uneasy market. Investors have contended with macroeconomic concerns tied to tariffs and worry that the shakeup to U.S. trade policy could cause a recession.
Prices for the 10-year Treasury were ahead, lowering yields to 4.40% from Thursday’s 4.44%. Treasury prices and yields move in opposite directions.
Oil prices dipped 77 cents to $60.17 U.S. a barrel.
Gold prices climbed $30.60 to $3,286.50
