Stocks posted their worst week of the year on fears a trade war between the US and China could be developing. The S&P 500 fell 2.2% and the Dow dropped 2.1% for the week. Internationally, Japan plunged 4.1% and Europe sank 3.4% for the week. The yield on the 10-year Treasury fell over the week as investors flocked to safe haven assets. The yield fell to 2.46%.
President Trump Tweeted on Sunday the 5th that trade negotiations with China were moving too slowly and said he would raise tariffs on $200 billion of Chinese goods to 25% on Friday from the current 10% level. He also said he would impose levies of 25% on $325 billion of Chinses goods that have yet to be taxed. Talks resumed Thursday and Friday and though the US said they were constructive they failed to reach an agreement. The US moved forward with raising tariffs on $200 billion of Chinese goods to 25% from the current 10% level and China said it was considering counter measures. The US also is set to move forward with the adding tariffs to the remaining Chinese goods that have not faced a levy.