U.S. stocks open lower as China imposes additional tariffs

Shortly after the opening bell, the Dow Jones Industrial Average was down 129.44 points, or 0.49 percent, to 26,122.80. The S&P 500 fell 13.80 points, or 0.47 percent, to 2,909.15. The Nasdaq Composite Index decreased 43.19 points, or 0.54 percent, to 7,948.20.

Staff work in the New York Stock Exchange on Aug. 12, 2019. [File Photo: AP via IC/Richard Drew]

According to a statement released by China's Customs Tariff Commission of the State Council on Friday, a total of 5,078 U.S. products will be subject to additional tariffs of 10 percent or 5 percent. The tariff hikes will be implemented in two batches and take effect at 12:01 p.m. Beijing time (0401 GMT) on Sept. 1 and at 12:01 p.m. (0401 GMT) on Dec. 15, respectively.

China's imposition of additional tariffs is a forced response to U.S. unilateralism and trade protectionism, the commission said.

The U.S. government announced on Aug. 15 that it will impose additional tariffs of 10 percent on Chinese goods worth about 300 billion U.S. dollars, effective on Sept. 1 and Dec. 15, respectively, in two batches.

The news came at a time when the U.S. market has already been worrying about a possible economic recession contributed by trade tensions between the United States and its major trading partners.

The benchmark U.S. 10-year Treasury note briefly traded under the 2-year note, the third time the recession indicator has been triggered since Aug. 14.

The so-called yield curve inversion is seen as a recession signal by many investors, and the bond market move reflects investors' concerns that the U.S. Federal Reserve will not act aggressively to cut interest rates.

The market was looking ahead of Federal Reserve Chairman Jerome Powell's scheduled speech later on Friday at the central bank's annual economic symposium in Jackson Hole, Wyoming.

Investors hope that Powell will clarify the central bank's stance on interest rate cuts and confirm the expectation of a more accommodating monetary policy at the symposium.