Beijing responded to Trump's steel and aluminum tariffs on Monday by following through on its threat to impose tariffs on $3 billion of USA imports.
Stocks closed sharply lower on Wall Street as technology companies took heavy losses and investors anxious about escalating trade tensions with China.
The S&P 500 fell 69 points, or 2.6 percent, to 2,570.
The Dow moved higher as gains in shares of Nike and those of Johnson & Johnson, recently up 2.9 percent and 2.2 percent respectively, outweighed declines in shares of General Electric and those of Walt Disney, down 1.1 percent and 0.5 percent respectively.
Shares of Boeing Co., for instance, continued their recent slide on Monday, losing 1.7 per cent, as investors fretted about whether the USA airplane maker, a major supplier to Chinese state-owned airlines, will have its wings clipped by retaliatory Chinese action. Trump repeatedly criticized the company lately over issues including taxes and Amazon's shipping deals with the U.S. Postal Service.
Most other leading technology companies were higher, with Amazon, Google-parent Alphabet and Intel all up about one percent or more. They were down 5.1 percent on Monday afternoon.
Rupert Murdoch offers to sell Sky News to Disney to appease regulator
In this scenario, Disney would end up acquiring Sky News whether or not its purchase of Fox's entertainment assets goes ahead. The CMA had also stated in January that its media plurality concerns would fall away on completion of Disney's Fox takeover.
Briton charged with attacking Australian rugby ace named
Rugby Australia (RA) later identified Stannard as the victim of the attack and said they were co-operating with police. Oliver was granted strict conditional bail and will appear at Waverley Local Court on Thursday, April 19.
Price sharp as Red Sox shut out Rays
The two-time All-Star was in danger of falling to 2-13 lifetime against Boston before Span delivered his first hit as a Ray. Xander Bogaerts went 2-for-4 with two doubles and a run and Hanley Ramirez was 2-for-4 with two strikeouts for Boston.
Trump has expressed disgust for multilateral trade decisions and has favored more adversarial action.
Ten of the 11 stock sectors closed in correction territory Monday. Trump has also proposed tariffs on a wider range of about US$60 billion worth of Chinese goods that China has yet to respond to beyond promising it will defend itself.
Tesla declined after the electric auto maker said Friday that the vehicle in a fatal crash last week in California was operating on Autopilot mode, making it the latest accident to involve a semi-autonomous vehicle.
WALMART GOES SHOPPING? Health insurer Humana rose following continued reports Walmart could buy the company or create a new partnership with it. Walmart stock fell 3.8 per cent.
Amazon fell 2 percent in early trading Monday, while Facebook lost 0.7 percent.
U.S. Treasury yields fell to two-month lows as investors fled sliding stocks for safety ahead of Friday's closely watched jobs report.
Wholesale gasoline added 1 cent to $1.97 a gallon and heating oil rose 1 cent to $2 a gallon. Brent crude, used to price worldwide oils, slid $1.52, or 2.2 percent, to $67.82 a barrel in London.
CURRENCIES: The dollar declined to 105.99 yen from 106.50 yen. Hong Kong's Hang Seng bucked the trend, ending up 0.2 percent. The euro dipped to $1.2288 from $1.2306.