MOSCOW (Sputnik) – China’s financial markets closed on Monday with stocks sinking about 5-7 percent, marking the largest drop since February 2016, following US President Donald Trump’s threats to impose more dramatic tariffs on Chinese goods.
The Shanghai Composite Index has dropped by 5.6 percent to 2906.46, while Shenzhen Composite has lost 7.4 percent and stands at 1515.8 after closing today.
Trump announced on Sunday that Washington would raise tariffs on a number of Chinese goods from 10 to 25 percent starting Friday, citing slow progress in trade talks. Media reported, citing sources, that China was mulling over the possibility of scraping the next round of talks after Trump’s statement.
READ MORE: China Considers Cancelling Trade Talks with US — Reports
Beijing and Washington have locked horns over trade since June 2018, when Trump announced that the United States would slap 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the US-Chinese trade deficit. Since then, the two countries have exchanged several rounds of trade tariffs.