Wall Street returned from a long holiday weekend in a foul mood Tuesday after the new round of tariffs that went into effect on Sunday appeared to do little to bring the U.S. and China to the bargaining table.
The Dow dropped more than 400 points on Tuesday morning on a report Washington and Beijing are struggling to come out with a schedule to resume talks to end a trade war that has rattled investors and dampened global manufacturing output.
Trump threw out another threat minutes before the opening bell in New York... this time warning China not to drag its feet through U.S. elections, because if he wins re-election QUOTE : "Deal would get much tougher! In the meantime, China's supply chain will crumble and businesses, jobs and money will be gone!"
On Sunday, Washington began imposing a 15% tariff on $125 billion worth of Chinese imports including footwear, smart watches, flat panel TVs, bluetooth headphones and clothing.
In retaliation, China started to impose additional tariffs on U.S. goods, including a 5 percent tax on U.S. crude.
So far - it looks like neither side is winning in this tit-for-tat trade war. The U.S. manufacturing sector slid into a downturn in August - according to the Institute for Supply Management. It's the first time that's happened in 3 years.
Meanwhile in China, that economy is in the midst of its weakest economic expansion in roughly 30 years.
Trade talks are supposed to resume sometime this month.