Global trade turmoil fears as tariffs on China rocket

MARKETS RECOILED AFTER Trump teased at the move earlier Friday in a social media post, with US stocks suffering their worst selloff in six months. The S&P 500 Index wiped out its weekly advance after tumbling 2.7%, its worst day since April 10. The Nasdaq 100 Index sank 3.5%.

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Ahead of the planned Xi-Trump summit, both the US and China moved to potentially curb flows of technology and materials between the countries.

In the most recent action, China slapped new port fees on US ships and started an antitrust investigation into Qualcomm — following fresh efforts to restrict the flow of rare-earth minerals needed to make numerous consumer products, including motors, semiconductors and fighter jets.

The escalating threats could simply be a way for Beijing and Washington to gain an edge in the talks. Some of the latest measures announced by Beijing were set to be enforced by November 8, so would also not be in effect before the expected Xi-Trump talks.

But companies must now navigate the rapidly changing trade environment — and the threat from Trump of even more escalation.