S&P 500 Tumbles as Trump Threatens ‘Massive’ China Tariff Hike

The S&P 500 (SPX) plunged sharply on Friday following President Trump's threat of a "massive increase of Tariffs on Chinese products" and potential countermeasures. The MOVE comes in response to China's "very hostile" actions, including rare-earth export controls and new fees on U.S. ships docking in Chinese ports.

China's Commerce Ministry tightened rare-earth export rules this week, requiring foreign suppliers to obtain approval for products containing even trace amounts (0.1% or more) of Chinese rare-earth materials. "Our relationship with China over the past six months has been very good, making this trade move even more surprising," TRUMP remarked in a Truth Social post.

The escalating trade tensions have created market uncertainty, with investors weighing the potential impact on global supply chains and economic growth. Trump hinted he might cancel an in-person meeting with Chinese President Xi Jinping at the upcoming APEC Summit, depending on China's response to the new measures.