Stock Markets In Turmoil Amid Uncertainty Over U.S.-China Trade Talks

By Avie Schneider

Published May 7, 2019 at 2:50 PM EDT

Updated at 4:17 p.m. ET

The Dow Jones Industrial Average plunged 473 points on Tuesday after Trump administration officials accused Beijing of reneging on commitments it had already made in trade talks. The blue chip index, which earlier was down more than 600 points, closed the day down 1.8%.

Other indexes also fell, with the S&P 500 down about 1.7% and the Nasdaq composite down nearly 2%.

The Trump administration has threatened to raise tariffs on $200 billion in imports from China to 25% from 10%, starting on Friday.

On Monday, after President Trump threatened to raise the tariffs, the Dow fell more than 450 points, before recovering to close down 66 points.

At a briefing with reporters Monday afternoon, U.S. Trade Representative Robert Lighthizer said China was "retreating from specific commitments that had already been made."

Treasury Secretary Steven Mnuchin said China was "trying to go back on language that had been previously negotiated."

The Chinese delegation is expected in Washington for talks set for Thursday evening and Friday, U.S. officials said.