Dow Jones falls more than 570 points on trade war concerns

US stocks fell sharply after China responded to Donald Trump's tariffs decision, which threatens a fierce trade war between the two countries.

China announced today that it would increase tariffs on imports of US goods by $60 billion to 25% from 10%, in response to a similar decision in which Washington approved tariff increases on imports of Chinese goods worth $200 billion.

China has rejected US President Donald Trump's warnings not to respond to the tariff increase, saying it would take the same action.

Despite the escalating trade war between the two countries, negotiations will continue, and Trump said that reaching an agreement with Beijing would abolish tariffs.

Analysts fear the escalation of the US-China trade war could open up other trade fronts and increase protectionism, which is hurting the global economy.

In terms of trading, Dow Jones fell by 2% (equivalent to 540 points) to reach 25,405 points, while Nasdaq slipped 3% (238 points) to 7,773 points, and Standard & Poor's fell by 2% (64 points) to 2,816 points.