Stocks fall as trade war with China escalates

(NBC News) – Stocks fell sharply Friday on word of $75 billion in new Chinese tariffs on U.S. goods and a series of tweets from President Trump.

Mr. Trump lashed out at Federal Reserve Chairman Jay Powell in a flurry of tweets after Powell failed to announce new rate cuts in a highly anticipated speech, and said U.S. trade policy and tariffs could be causing the economy to slow.

“My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” President Trump tweeted, referring to the Chinese leader.

In another tweet, the president declared he “hereby ordered” American companies operating in China to avoid doing business there.

China announced the new round of tariffs on U.S. goods will begin September 1st, followed by mid-December tariffs on U.S. automobiles.

That schedule matches tariffs already announced by the White House on $300 billion in Chinese goods.