- The Dow Jones industrial average opened down 230 points Friday after President Trump tweeted that ‘trade wars are good.’
- The drop comes after Thursday’s market selloff spread to Europe and Asia.
- You can track the Dow in real-time here>>
Stocks are continuing their slide Friday, with the Dow Jones industrial average opening down 230 points, or 0.95%, after President Donald Trump said that trade wars are good.
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” Trump tweeted. “Example, when we are down $US100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”
On Thursday, Trump confirmed new 25% taxes on imported steel and 10% on imported aluminium would be announced next week, sending the Dow down almost 600 points at its lowest levels.
The news also raised the spectre of a trade war, in which the US and other countries increase protectionist measures back and forth. Economists say such a fight would ultimately increase prices for US consumers and possibly lead to a broad economic slowdown.
“Extremely concerning stance,” Paul Mortimer-Lee, chief US economist for BNP Paribas, said in response to Trump’s tweet. “History suggests trade wars lead to everyone losing.”
This story is developing and will be updated…