Dow drops as much as 300 points as fears of a potential trade war rise

pulse

March 14, 2018 4:31 PM

China on Wednesday warned it would retaliate against President Trump's new tariffs on imported steel and aluminum.

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The Dow Jones industrial average fell as much as 306 points on Wednesday, as possible Chinese retaliation against the new metals tariffs stoke fears of a potential trade war.

China's National People's Congress spokesperson Zhang Yesui on Wednesday threatened to retaliate to the US president's proposed new tariffs on steel and aluminum, China doesn't want a trade war, the politician said, but it will respond in kind if Trump's tariffs harm it economically.

Boeing, which could be a potential target of retaliatory tariffs by China, was among the worst hit, falling more than 4% in trading. China has agreed to buy about $1 trillion worth of aircraft over the next two decades from the company.

Companies that get a high percentage of their revenue from China are also at heightened risk as the prospect of a global trade war mounts, according to UBS. The Swiss bank identified 11 stocks to avoid if a trade war does break out.

Cryptocurrencies were also falling Wednesday after Google followed Facebook's lead and said it would ban all advertising related to bitcoin, cryptocurrencies, or ICOs.

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