(CNBC) – Stocks slashed gains on Thursday after President Donald Trump said the U.S. would impose an additional 10 percent tariff on Chinese imports to the U.S.
The Dow Jones Industrial Average traded 300 points lower after rallying as much as 311 points earlier in the day. The S&P 500 was down 1.1 percent. The Nasdaq Composite traded down 1.1 percent after jumping more than 1.6 percent.
"Trade has always been an issue hanging over the market and whether or not we see an escalation, said Quincy Krosby, chief market strategist at Prudential Financial. "The fact is we'll surely get a reaction from Beijing."
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"There were concerns that after the [Federal Reserve] meeting and as earnings season began to wind down, the market would be more susceptible to volatility," Krosby said.
Trump said in a series of tweets the tariff will be imposed on $300 billion worth of Chinese goods. The levy will take effect Sept. 1.