Major US stock indexes have fallen significantly, as investors reacted to Beijing’s decision to raise tariffs on certain US goods in response to Washington’s increase in tariffs on Chinese imports last week. This raised fears that another round of retaliation might push the US economy into recession.

China announced its intention to raise tariffs on American goods by $ 60 billion to 5-25% from 5-10%, starting from June 1. Products subject to new tariffs include a wide range of agricultural products. This happened after US President Donald Trump raised tariffs for Chinese products totaling $ 200 billion from 10% to 25% at the end of last week. China’s statement said the US decision jeopardized the interests of both countries and did not meet the “general expectations of the international community.”

Against this background, the shares of technology companies, including manufacturers of microcircuits, industrial giants, and retailers, whose business is largely tied to China, were in the epicenter of sales.

US President Trump said earlier on Twitter: “I openly tell President Xi and all my many friends in China that it will be very painful for China if you do not make a deal because companies will have to leave China in favor of other countries. Too expensive to buy in China. You had a great deal, almost done, but you backed off! ”He also warned Beijing not to retaliate against the tariff increase he introduced last week.

Despite tensions between the two largest economies in the world, White House Economic Adviser Larry Kudlow said Sunday that Trump and Chinese President Xi Jinping will most likely meet at the G-20 summit in Japan in June. Cudlow said that the chances for such a meeting were “pretty good,” but added that “there are no concrete, clear plans” for when the negotiators of the United States and China will meet again.

Almost all DOW components recorded a decline (29 of 30). Outsider were shares of Apple Inc. (AAPL; -5.85%). Only the shares of The Procter & Gamble Company (PG, + 0.18%) went up.

Almost all sectors of the S & P finished trading in the red. The largest decline was shown by the conglomerate sector (-4.4%). Only the utility sector grew (+ 0.4%).

At the time of closing:

Dow 25,324.99 -617.38 -2.38%

S & P 500 2,811.87 -69.53 -2.41%

Nasdaq 100 7,647.02 -269.92 -3.41%