Dow Jones Stalls as China Launches Retaliatory Trade Probes Against U.S.

The Dow Jones (DJIA) is set to open Friday in the red after China announced that it had opened two trade probes against the U.S.

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China’s Commerce Ministry noted that the probes are in response to two Section 301 investigations imposed on China by the U.S. and will focus on practices that “disrupt global supply and industrial ​chains” and “hinder trade in green products.”

U.S.-China Exchange Trade Probes ahead of Trump’s Visit to Beijing

The Section 301 investigations announced by the U.S. earlier this month target several U.S. trading partners, including China, the European Union, Mexico, and India. President Trump could enact new tariffs on those countries if the investigation find that they engaged in unfair trade practices.

The retaliatory investigations come ahead of a highly anticipated summit between Trump and Chinese President Xi Jinping on May 14-15 in Beijing, China. The summit was originally scheduled for March 31 to April 2 but was delayed due to the war in Iran.