Another round of high-level tariff talks between the United States and China is scheduled for this week, dealing investors fresh worries over a potentially prolonged trade war.
The Dow Jones Industrial Average opened the trading day down 0.26%, or shy of 70 points. Both the S&P 500 and Nasdaq Composite also dropped 0.26%, or 7.7 points and 20.75 points, respectively. It comes just days before officials from Washington and Beijing meet to hammer out terms of a deal that could end their yearlong financial dispute.
Shoe stocks were similarly treading carefully at market open, with major athletic player Nike Inc. dipping 0.26% to $92.83 and fashion accessories chain Steven Madden Ltd. falling 0.38% to $34.30. However, department store giant Nordstrom Inc. rose 0.55% to $32.67 and clog maker Crocs Inc. climbed 0.14% to $28.83.
Over the past year and a half, President Donald Trump has initiated four tranches of tariffs on Chinese goods. The U.S. leader recently postponed levies on $250 billion worth of Chinese products — representing the combined first three tranches — as a “measure of goodwill” during the celebration of the 70th anniversary of the founding of the People’s Republic of China. The 5% duty increase, originally scheduled to take effect on Oct. 1, will now be imposed on Oct. 15.
Watch on FN
However, the fourth group of duties, which would impact $300 billion in Chinese imports — including footwear, apparel and other accessories — has been spread across two dates. On Sept. 1, Washington hit Beijing with a 15% levy on $112 billion worth of those goods. China retaliated by slapping American products with new duties that range from 5% to 10%. Tariffs on the remaining $188 billion will be implemented on Dec. 15.
Run the Numbers: Less Than Half of Americans Will Buy a Product That Costs More Due to Tariffs
Columbia, VF Corp. and Others in the Outdoor Industry Warn Congress of Tariffs’ Impact
Nike, Crocs and More Brands Band Together Against Trump’s Added Tariffs