Stocks jolted by Don’s China tariff threats

THE STOCK market tumbled Tuesday, as the Trump administration affirmed its intentions to slap China with steep tariffs, while political instability in Italy shook investors around the globe.

The Dow Jones index dropped 392 points, or 1.6%, and Italian investors shed government bonds en masse, prompting U.S. investors to shift their focus to lowerrisk stocks.

The benchmark S&P 500 Index followed suit, sinking 31 points, or 1.2%, while the Nasdaq lost 37 points, or 0.5%.

Italy has been in political turmoil since the country's president cherry-picked a new prime minister after the leading far-right coalition refused to withdraw an antieuro-currency candidate for the government’s top economic post.

The move ended the coalition’s attempt to establish a government, which means a new election is likely going to take place.

Meanwhile, the Trump administration sparked renewed fears of a global trade war, announcing it will proceed with its proposal to impose 25% tariffs on $50 billion worth of Chinese goods.