The US stocks are tumbling on Monday after China officially raised import duties on US pork, apples and other products. It’s too soon to call it the beginning of a trade war, but for now, investors aren’t sticking around to find out.
Formerly high-flying technology companies like Microsoft and Alphabet fell, and Intel took a steep drop following a report in Bloomberg Newsthat Apple plans to start using its own chips in Mac computers as early as 2020, replacing Intel.
China raised import duties on a $3 billion list of US goods in response to the tariffs on imported steel and aluminium that President Donald Trump ordered last month. The Chinese tariff hit meat producer Tyson Foods hard, but investors are mostly concerned that both countries will take further steps that ultimately harm global commerce and company profits. The Dow Jones industrial average fell as much as 750 points.
Other market leaders like industrial giant Boeing and streaming video service Netflix also slumped. Amazon got a double dose of bad news. On top of the broader market worries, the online retailer has been the target of numerous critical tweets from President Donald Trump over the last few days and investors and investors are selling its stock.