Trump orders US companies to stop doing business with China

His tweets sent the Dow diving 621 points; in retaliation, China announced tariffs on $75 billion of U.S. goods.
3:14 | 08/24/19

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Transcript for Trump orders US companies to stop doing business with China
We begin with president trump escalating his trade war. Just moments ago, taking new, aggressive action against China. The president furious at beijing imposing tariffs on $75 billion of American goods. And he fought back with another tariff hike of his own. He also took aim at the fed chair. The markets responding in real time. The Dow closing down 623 points. All of this as president president prepares to leave for the g-7 summit in France. Here's Kyra Phillips. Reporter: Wall Street today sent reeling after a morning tweetstorm from president trump. The Dow diving 623 points after the president tweeted American companies were, quote, "Hereby ordered" to stop doing business with China. The president has no authority to order private businesses to cut ties with China. And then he took to Twitter again, later in the day, to joke about the stock market plunge. For American farmers like Gregg hora in Iowa, none of this is funny. China today announced retaliatory tariffs on $75 billion of American goods, including pork. But even before that, the trade war was hitting him hard. Pig farmers are currently losing about $25 to $30 per pig. And the future, or the next six months, does not look very optimistic. Reporter: Earlier this week, I asked the president about warning signs the trade war could lead the country into a recession. Is the trade war with China taking America into a recession? Is it worth it? And do Americans need to back that up? This is a trade war that should have taken place a long time ago by a lot of other presidents. I am the chosen one. Somebody had to do it. So I'm taking on China. Reporter: Still, with his eye on re-election, the president declares the economy, quote, "Fantastic." Blaming any uncertainty on his own handpicked fed chairman Jay Powell. He's strong. He's committed. He's smart. Reporter: But trump is now attacking Powell for not further lowering interest rates. Today Powell saying the trade war "Seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States." The president, quickly firing back, asking "Who is our bigger enemy? Jay Powell or chairman XI?" Kyra joining us live from the white house. The president leaves for the g-7 summit in France. But not before firing another big shot in the trade war. Reporter: That's right. He announced he's raising tariffs on $250 billion on Chinese goods to 30%. As for the impact on American consumers, that's still unknown. But even before today's moves, JPMorgan predicted it will cost American families an additional $1,000 per years. Thank you.

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

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