Stocks are dropping sharply after President Trump threatened more tariffs against China. The escalation of tensions came as investors were hoping the long-running trade war between the world’s two biggest economic powers might be winding down. (May 6) AP, AP

WASHINGTON – President Donald Trump’s administration allowed U.S. tariffs on $200 billion in Chinese goods to more than double even as officials said high-stakes negotiations intended to broker a new agreement would continue Friday.

U.S. and Chinese negotiators failed to reach an agreement late Thursday ahead of the president’s self-imposed midnight deadline, meaning tariffs jumped to 25% from 10% on a massive range of Chinese goods, including office furniture, handbags and frozen catfish fillets.