Stocks slump broadly as more tariffs kick in

Technology companies led stocks broadly lower as disappointing economic data and the latest escalation in the U.S.-China trade dispute put investors in a selling mood, while Treasuries rose and the dollar declined after a gauge of American manufacturing s

What’s happening

The latest rounds of tariffs from both the U.S. and China kicked in over the weekend, with each piling on to the hundreds of billions of dollars in imports already tied up in the year-long conflict. On Sunday, the U.S. started charging a 15% tariff on about $112 billion of Chinese products. China responded by charging tariffs of 10% and 5% on a list of American goods. Despite dovish remarks from leaders on both sides late last week, there has been no word on when new negotiations will take place.

What they’re saying

In tweets Tuesday, Trump insisted negotiations with China were going well, then threatened to crack down even harder on the world’s second-largest economy if he wins reelection in 2020 and hinted he may target the European Union next.

“For all of the ‘geniuses’ out there, many who have been in other administrations and ‘taken to the cleaners’ by China, that want me to get together with the EU and others to go after China Trade practices remember, the EU & all treat us VERY unfairly on Trade also,” Trump tweeted. “Will change!”

One of Beijing’s trade advisers said that the burden of ending the trade war sits squarely with Trump. Wang Huiyao, president of Center for China and Globalization, a Beijing-based think tank, said that China has made “all efforts” to address U.S. complaints.

“It’s up to the U.S. to really go ahead and be flexible and not take a really harsh attitude on this,” Wang said on CNBC. He added: “We cannot have a perfect deal. You can see that China has continued to open not for the U.S.’s sake and interest but for China itself.”

What’s next

The U.S. jobs report on Friday is projected to show the widely watched nonfarm payrolls rose by 158,000 in August, versus 164,000 the month prior. Estimates are for unemployment to be steady at 3.7% and the average hourly earnings rate of increase to slow to 3.0%.