Volatility soars and shares slide after Beijing imposes tariffs on imports of agricultural goods from America

The Dow Jones industrial average, which tracks 30 major US companies, has dropped by 0.9% – shedding 383 points to trade around 42,418.

The broader S&P 500 index is down 1.4%, while the tech-focused Nasdaq has slumped by 2%.

This follows last week’s selloff, in which the S&P 500 fell by over 3%, its worst run since early September.

Stocks are sliding today after China today imposed reciprical tariffs on US imports, targeting agricultural products, in response to the 10% tariff imposed by the US on Chinese imports.

Hopes that Donald Trump’s more erratic actions could be reined in by the markets appear to be being eroded, after the US president failed to rule out a recession in his weekend interview with Fox.