US stocks have plunged dramatically as the escalating trade war with China sparked a huge sell-off on Wall Street.
All three major US indexes lost ground in the widespread sell-off, with the Dow Jones suffering its largest percentage drop since January 3.
China said it would impose tariffs on $60 billion (£46 billion) in US goods. This comes despite President Donald Trump’s warning not to retaliate against additional tariffs on Chinese imports announced on Friday.
The latest escalations stoked fears of a global economic downturn.
In addition to the Dow’s dramatic plunge on Monday, the Nasdag posted its biggest one-day percentage loss this year.
The S&P 500 also saw its largest percentage drop since January 3.
The market tumbles came despite Mr Trump’s announcement that he will meet Chinese President Xi Jinping next month in a bid to resolve the trade war.
China's finance ministry said it plans to set import tariffs ranging from 5 per cent to 25 per cent on a target list worth about $60 billion.
Mr Trump on Friday ordered his trade chief to begin the process of imposing tariffs on all remaining imports from China.
US Treasury yields fell to six-week lows, with 10-year yields falling below those of 3-month bills, an inversion seen by many as a potential harbinger of recession.
The Dow Jones Industrial Average fell 617.38 points, or 2.38 per cent, to 25,324.99, the S&P 500 lost 69.53 points, or 2.41 per cent to 2,811.87.
The Nasdaq Composite dropped 269.92 points, or 3.41 per cent, to 7,647.02.
Of the 11 major sectors of the S&P 500, only utilities ended the session in the black. Trade-sensitive tech companies suffered the largest percentage decline.
Shares of Apple Inc sank 5.8 per cent on the double whammy of heightened trade tensions and a decision by the US Supreme Court to allow an antitrust lawsuit accusing the company of monopolizing the iPhone app market.
Uber Technologies Inc extended its slide, falling 10.8 per cent on only its second day as a publicly traded company following Friday's underwhelming debut.
Ride-hailing peer Lyft Inc was also down, dropping 5.8 per cent.
Shares of Tesla Inc fell 5.2 per cent to their lowest in more than two years.
Agencies contributed to this report
