Dow futures drop after Trump threatens new tariffs against China

Dow futures drop after Trump threatens new tariffs against China
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Stock market futures tanked Thursday night on news that President TrumpDonald John TrumpSenate gears up for battle over witnesses in impeachment trial Vulnerable Democrats tout legislative wins, not impeachment Trump appears to set personal record for tweets in a day MORE is considering $100 billion in new tariffs targeting China over intellectual property theft.

CNBC reports that Dow Jones industrial average futures plummeted, indicating the market would open more than 350 points down on Friday as a result of the news.

Trump issued a statement Thursday night saying he had ordered U.S. Trade Representative (USTR) Robert LighthizerRobert (Bob) Emmet LighthizerGOP senator warns quick vote on new NAFTA would be 'huge mistake' Pelosi casts doubt on USMCA deal in 2019 Pelosi sounds hopeful on new NAFTA deal despite tensions with White House MORE to consider $100 billion in new tariffs against China over claims Chinese companies are involved in large-scale theft of U.S. technologies.

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"In light of China's unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs," Trump said in the statement.

Lighthizer said in a statement that Trump's proposed response was "appropriate" and necessary for dealing with malicious Chinese trade practices.

"President Trump is proposing an appropriate response to China's recent threat of new tariffs. After a detailed investigation, USTR found overwhelming evidence that China's unreasonable actions are harming the U.S. economy," he said.

Lighthizer also condemned China's promises to respond to any U.S. actions with retaliatory measures.

"Unfortunately, China has chosen to respond thus far with threats to impose unjustified tariffs on billions of dollars in U.S. exports ... Under these circumstances, the President is right to ask for additional appropriate action to obtain the elimination of the unfair acts, policies, and practices identified in USTR's report," Lighthizer said.

On Wednesday, China unveiled $50 billion in tariffs targeting U.S. soybeans, automobiles and airplanes, a move that was retribution for tariffs previously implemented by the Trump administration.

Trump maintained Wednesday that the U.S. is not in a trade war with China, despite the mounting actions on both sides. China has not yet responded to the president's Thursday statement promising more tariffs.