Stock Markets Drop Amid Escalating Tariff Threats

Trader John Panin works on the floor of the New York Stock Exchange on Tuesday. U.S. stock markets opened sharply lower as U.S.-China trade tensions grew.

Richard Drew / AP

Updated at 4:31 p.m. ET

The U.S. stock market fell sharply Tuesday in response to President Trump’s recent threats to add another layer of tariffs on $200 billion worth of Chinese goods.

The Dow Jones industrial average closed down 287 points, or about 1.15 percent, marking its sixth straight daily drop. The broader S&P 500 index lost 11 points, or about 0.4 percent.