Stocks decline as US says higher China tariffs coming Friday

Stocks fell sharply Tuesday after a top U.S. trade official indicated that higher tariffs on Chinese goods are coming later this week.

The Dow tumbled more than 500 points, while the S&P 500 fell 1.8% as the energy sector lagged. The Nasdaq dropped 2.1%.

Shares of trade bellwethers Caterpillar and Boeing fell. Chipmakers led the tech sector lower. The VanEck Vectors Semiconductor ETF declined by 1.7% as KLA-Tencor dropped 6%. Applied Materials and NXP Semiconductors fell more than 2% each.

U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports Friday.

Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levy on another $325 billion of Chinese goods shortly.

https://www.msn.com/en-us/money/markets/stocks-decline-as-us-says-higher-china-tariffs-coming-friday/ar-AAB0TCx?li=BBnbfcN