Dow futures tumble 300 points as US considers additional tariffs on China

• Tit-for-tat trade tariffs between China and the US boost trade war fears.
• Dow futures drop more than 300 points, Yen picks up a bid. 

US equity index futures are taking a beating and the anti-risk Japanese Yen is on the rise as things continue to heat up on trade war front.

According to a Bloomberg report, President Trump has advised US treasury to consider imposing tariffs on an additional $100 billion in Chinese imports

“In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs,” Trump said in a statement issued by the White House.

The tit-for-tat tariffs indicate the trade war is taking a turn for the worst, thus the Dow futures have dropped more than 300 points or 1.3 percent. Also, the S&P 500 futures have shed 28 points or 1 percent.

Meanwhile, the JPY has caught a bid wave. The USD/JPY pair is down 0.24 percent at 107.13, having witnessed an inverse head-and-shoulders breakout yesterday. The sell-off may gather pace in Europe and US session as retaliatory actions will make it hard for trade officials to resolve the dispute via negotiations.