Stocks were higher Tuesday, shrugging off the Trump administration’s application of additional tariffs on $200 billion of Chinese goods.
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The Dow Jones Industrial Average added 184.84 points, or 0.71 percent, closing at 26,246.96. The S&P 500 rose 15.51 points, about 0.5 percent, to 2,904.31. The Nasdaq Composite climbed 60.32 points, or 0.76 percent, to 7,956.11.
|I:DJI||DOW JONES AVERAGES||26465.54||+353.01||+1.35%|
|I:COMP||NASDAQ COMPOSITE INDEX||7953.882994||+108.86||+1.39%|
President Donald Trump on Monday escalated the U.S.-China trade war by announcing new tariffs on about $200 billion of Chinese imports.
The move, which had been expected since at least the weekend, imposes 10 percent tariffs on the products. The levies will climb to 25 percent beginning Jan. 1, 2019. The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other U.S. industries.
The Chinese commerce ministry said in a statement that China has no choice but to retaliate, but didn’t say how.
In company news, General Mills fell 7.6 percent after the food company released its latest earnings. General Mills topped analysts’ expectations in terms of earnings, but revenue was a miss. The company reiterated its full-year forecast.
Commodities were mostly higher.
U.S. stocks were lower Monday in anticipation of the new tariffs. The Dow Jones Industrial Average fell 92.55 points, or 0.35 percent, to 26,062.12. The S&P 500 was down 16.18 points, closing at 2,888.80. The Nasdaq Composite dropped 114..5 points, or 1.43 percent, to 7,895.79.
FOX Business’ Ken Martin contributed to this article.