WASHINGTON – (INT) -President Trump is asking U.S. companies doing business in China to explore relocating their operations after Beijing unveiled new tariffs on U.S. goods.

It’s among the latest twists in a trade war that showed anew its potency to rattle investors, confound central bankers and cloud the global economy.

The potential consequences are coming swiftly.

China threatened to impose additional tariffs on $75 billion of American goods including soybeans, automobiles and oil.

The announcements by Trump and the Chinese government rattled stock markets. The Dow Jones Industrial Average on the New York Stock Exchange closed off more than 620 points — a loss of 2.37%.

U.S. stocks slumped and Treasuries rallied after President Donald Trump said he’ll respond to new Chinese tariffs and blasted Federal Reserve Chairman Jerome Powell. The dollar fell.

The trade war escalation rekindled concerns about the outlook for global growth that’s already looking shaky. The announcement comes as leaders from the Group of Sevennations prepare to meet in France and central bankers gather in Jackson Hole. Trump tweeted that the Fed chairman could be a greater “enemy” of the U.S. than Chinese President Xi Jinping. “As usual, the Fed did NOTHING!,” he wrote.

Story Date: August 24, 2019