Dow Drops 2.1% as Tariffs Unexpectedly Return

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The U.S. and China are playing a game of chicken with trade—and there may be no winners.

The market had been counting on a trade deal between the U.S. and China, so it was taken a bit aback when President Donald Trump threatened to increase tariffs. By the end of the week, as more details emerged about China backing away from previous promises, he followed through on that threat. The Dow Jones Industrial Average declined 562.58 points, or 2.1%, to 25,942.37 this past week, while the S&P 500 index fell 2.2%, to 2881.40,…