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Trump escalates tariffs on hundreds of billions of dollars worth of Chinese imports

President Trump said he would raise tariffs against China on Friday in the aftermath of China's newly announced tariffs and a steep stock market drop.

What's happening: Trump said on Friday that $250 billion worth of goods and products from China would be taxed at 30% instead of 25%, starting Oct. 1, and the remaining $300 billion worth of goods will be taxed at 15%, instead of 10%.

The big picture: China announced earlier on Friday that it would levy retaliatory tariffs ranging from 5% to 10% on $75 billion of U.S. goods in two batches on Sept. 1 and Dec. 15.

  • China also said it plans to spike its tariffs on U.S. automobiles back up to 25% by December, after making progress on the issue during G20 talks between Chinese President Xi Jingping and Trump.

Earlier on Friday, Trump painted Powell and China as the 2 biggest enemies of the U.S. The Dow Jones Industrial Average lost 623 points after Trump's tweets, or 2.37%. The Nasdaq lost 3%, and the S&P 500 was off 2.59%.

Go deeper: Stocks plunge after Trump's trade tweets