Stocks tumble…Trump defends tariffs, China vows to retaliate…Industrial production slips
NEW YORK (AP) – Stocks are tumbling in early trading on Wall Street, along with other markets around the world, after the Trump administration announced tariffs on $50 billion of imports from China. China has said it will retaliate with its own tariffs, raising concerns in the stock market that a resulting trade war could leave the global economy as collateral damage. Barriers to trade could result in higher prices at stores for all kinds of products purchased by U.S. consumers, weaker profits for companies and slower growth around the world.
WASHINGTON (AP) – The Trump administration has announced a 25 percent tariff on up to $50 billion worth of Chinese imports, escalating a trade dispute between the world’s two largest economies. China says it will retaliate with $50 billion in tariffs in response, without giving details. During an impromptu appearance this morning on the White House North Lawn, the president hailed his “very big tariffs.” He accuses China of unfair trade practices and efforts to undermine U.S. technology and intellectual property.
WASHINGTON (AP) – Industrial production slipped 0.1 percent in May, primarily dragged by a drop in manufacturing caused by a fire at a parts supplier for trucks. The Federal Reserve says that the manufacturing component of industrial production fell 0.7 percent in May largely because of this disruption in truck assemblies. Output at factories for metal, electrical equipment and apparel also declined, along with the 6.5 percent drop for motor vehicles and parts. Still, factory output has improved 1.7 percent over the past year and overall industrial production has increased 3.5 percent.
BATTLE CREEK, Mich. (AP) – The Kellogg Company is voluntarily recalling some of its Honey Smacks cereal after salmonella infected 73 people in 31 states. The Centers for Disease Control and Prevention says most of the outbreaks were in California, Massachusetts, New York and Pennsylvania. The recall affects 15.3-ounce packages with the UPS Code 3800039103 and 23-ounce packages with the UPS Code 3800014810. Both have best used by dates from June 14, 2018, through June 14, 2019. Consumers are advised to throw the cereal away and contact Kellogg for a refund.
CHARLOTTE, N.C. (AP) – American Airlines says a technical problem that forced one of its regional carriers to cancel hundreds of flights has been resolved. A company statement says American’s PSA Airlines carrier canceled 275 flights Thursday and around 400 flights Friday because of the technical issue. Travel through Charlotte-Douglas International Airport has been particularly affected, where nearly half of PSA’s Friday flights were canceled. The airline says the problem with a system that affects crew scheduling and dispatch operations was resolved and service was expected to resume at noon on Friday.