Stock market plummets amid China trade war

The U.S. officially labeled China a currency manipulator for the first time since 1994, an action that is rocking Wall Street.
1:20 | 08/06/19

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Transcript for Stock market plummets amid China trade war
We move to Wall Street now after the worst day of the year and the stock market dropping more than 2%. Our chief economics correspondent Rebecca Jarvis is on the floor of the New York stock exchange. It was sparked by China's retaliation for president trump's tariff threat That's right. We've seen a major escalation in the rhetoric of this trade war the U.S. Overnight now labeling China officially a currency manipulator and the real question here on Wall Street is how much longer does this game of chicken between the world's two largest economies last, that has an impact on stocks but also has an impact on companies and prices in the United States. While U.S. Companies agree, something should be done to level the playing field, they also acknowledge that the U.S. Consumer will bear the brunt of this trade war and prices as they rise as a result, George. Farmers too. China says they'll stop buying U.S. Agriculture and this new deadline coming up September 1st for the president to impose new tariffs. Reporter: That's right, 10% tariffs on $300 billion worth of goods from toys to shoes to clothes, electronics and, again, remember, the U.S. Pays those tariffs. U.S. Companies pay those added tariffs at the border and then it's up to those businesses whether they pass them off to consumers, George. Rebecca Jarvis, thanks very much, Michael.

This transcript has been automatically generated and may not be 100% accurate.

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