Finance

Stocks drop after Trump threatens response to new Chinese tariffs

U.S. stocks dropped sharply Friday after President Trump said he would respond to new tariffs from Beijing issued earlier that day and ordered American firms to look beyond China. 

The Dow Jones Industrial Average fell more than 560 points, a 2.2 percent drop, after Trump tweeted that he "will be responding" to new Chinese tariffs on $75 billion in U.S. goods announced Friday. The Nasdaq composite fell 2.8 percent after Trump's tweets, while the S&P 500 fell 2.3 percent.

Trump also demanded that U.S. companies cease manufacturing in China, though it's unclear if the president can make that happen.

"We don't need China and, frankly, would be far ... better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP," Trump tweeted Friday.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing ... your companies HOME and making your products in the USA."

Trump also ordered FedEx, Amazon, UPS and the U.S. Post Office to step up efforts to weed out fentanyl shipments from China. Shares of Amazon, UPS and FedEx all fell after Trump's tweets.

Updated at 2:50 p.m.

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