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By Caroline Valetkevitch NEW YORK (Reuters) -Stocks fell sharply on Friday, with the S&P 500 and Nasdaq suffering their biggest one-day percentage declines since April 10, while Treasury yields dropped and the U.S. dollar weakened as comments by President Donald Trump reignited worries over a U.S.-China trade war. After markets closed on Friday, Trump said he was raising tariffs on Chinese exports to the U.S. to 100% and imposing export controls on "any and all critical software" in a reprisal against recently announced export limits by China on rare earth minerals critical to tech and other manufacturing. The announcement followed an earlier Trump social media post on Friday that signaled new levies against Chinese goods were in the offing, while threatening to cancel a meeting with President Xi Jinping. The news sent markets into turmoil, stirring concerns over how the trade war will affect the U.S. economy. Trump's April 2 "Liberation Day" tariff announcement set off some of the most severe market volatility in years. Technology-related shares led the day's tumble on Wall Street, with the S&P 500 technology index falling 4% on the day and an index of semiconductors declining 6.3%. U.S.-listed shares of Chinese firms also dropped. E-commerce firm Alibaba Group Holding finished 8.4% lower and JD.com Inc declined 6.2%. Shares added to losses after the bell. Oil prices fell more than $2 a barrel as trade worries cast a shadow over the demand outlook, while spot gold rallied back above the $4,000 an ounce milestone. "He's caught the market off guard again and thrown more question marks into a market that is being questioned about a very high degree of enthusiasm and being sort of scrutinized for having too much fluff built into it," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. At the close, the Dow Jones Industrial Average was down 878.82 points, or 1.90%, at 45,479.60, the S&P 500 was down 182.60 points, or 2.71%, at 6,552.51 and the Nasdaq Composite was down 820.20 points, or 3.56%, at 22,204.43. U.S. stock indexes had hit record highs earlier this week, lifted in part by expectations of further interest rate cuts from the Federal Reserve and optimism about artificial intelligence-related deals. The three major U.S. stock indexes posted losses for the week, with the S&P 500 registering its biggest weekly percentage decline since May. MSCI's gauge of stocks across the globe fell 20.96 points, or 2.11%, to 972.51. European shares ended 1.25% lower, erasing weekly gains in a last-minute slide tied to the comments from Trump. U.S. Treasury yields fell to multi-week lows as investors moved to safe havens following Trump's early comments. Movement in U.S. sovereign debt yields had been in a holding pattern in recent days as a U.S. federal government shutdown, which began October 1, has halted the production of key economic indicators. In afternoon trading, the yield on the benchmark U.S. 10-year Treasury note  fell to a more than one-month low and was last down 9.1 basis points (bps) at 4.057%. The U.S. dollar dropped after Trump's remarks, which lifted the euro and the yen against the greenback, while currencies linked to commodities and raw materials, including the Australian dollar, fell. The dollar index was last down 0.4% at 98.99. It is still set for a weekly gain of 1.66%, the largest since September 2024, after the Japanese yen and euro this week were hurt by fiscal concerns in their regions. The yen was last up 0.86% against the greenback at 151.73 per dollar on the day, while the euro was up 0.38% on the day at $1.1607. The Japanese currency has dropped on concerns that the Bank of Japan may not hike interest rates again this year after fiscal dove Sanae Takaichi's surprise victory to lead the ruling party. Japanese Finance Minister Katsunobu Kato said on Friday that the government was concerned about excessive volatility in the foreign exchange market. In France, President Emmanuel Macron late on Friday named Sebastien Lecornu as prime minister, reappointing him to a job he had quit earlier this week. Markets were rocked on Monday after Lecornu tendered his resignation. French blue chip stocks dropped 2% this week. U.S. crude fell  $2.61 to settle at $58.90 and Brent fell $2.49 to settle at $62.73. Spot gold rose 0.85% to $4,008.74 an ounce.  (Additional reporting by Marc Jones in London and Purvi Agarwal; Editing by Susan Fenton, Nick Zieminski and Edmund Klamann)

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(Reuters) -Bank holding firm Central Bancompany on Friday revealed an about 6% rise in revenue in the first half of the year as it filed for a U.S. initial public offering, becoming the latest financial firm to seek a buoyant listing market. U.S. IPO activity has picked up in recent months after a lull caused by market volatility and trade policy uncertainty, with strong debuts from Alliance Laundry and Phoenix Education Partners on Thursday underscoring renewed investor appetite for risk. Last month, another bank holding firm Commercial Bancgroup and automated digital wealth management company Wealthfront had said they plan to list in the U.S. Since the 2008 financial crisis, U.S. bank IPOs have been rare, as tighter regulations, rising compliance costs and market volatility reduced the appeal of public listings. Central Bancompany had net income of $186.2 million on total revenue of $493.2 million for the six months ended June 30, compared with net income of $171.3 million on revenue of $466.1 million a year earlier, according to a filing. The Jefferson City, Missouri-based Central Bancompany had $19.1 billion in total assets and $14.2 billion in wealth assets under advice as of June 30. Through its unit, the Central Trust Bank, it offers consumer, commercial and wealth management services across Missouri, Kansas, Oklahoma and Colorado. Central Bancompany will list on the Nasdaq under the ticker symbol "CBC". Morgan Stanley and Keefe, Bruyette & Woods are the lead underwriters for the offering. (Reporting by Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber, Alan Barona and Sahal Muhammed)

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By Chibuike Oguh NEW YORK (Reuters) -Investor worries that Wall Street's record stock rally would soon fizzle loomed large on Friday after tariffs re-emerged as a market risk.  U.S. equity markets, fresh off midweek record highs, performed an about-face during the trading session after President Donald Trump revived threats to hike tariffs against China. Investors worried that a possible tit-for-tat trade drama between the world's two biggest economies could mark the end of a record-breaking rise in U.S. equities.  Trump, who was due to meet Chinese President Xi Jinping in about three weeks in South Korea, questioned whether there was a reason to take the meeting and complained on social media about what he called China's plans to hold the global economy hostage after it dramatically expanded its rare earths export controls on Thursday. Late on Friday, after Wall Street's official trading session had ended, Trump said he would impose an additional 100% tariff on imports from China on November 1, as well as export controls on critical U.S.-made software. The Republican President said he had not canceled the meeting with Xi but his tariff threats sent market heavyweight shares tumbling. Nvidia, Tesla , Amazon.com and Advanced Micro Devices all fell more than 2% after the bell.  TARIFF TALK DRIVES DOWN MARKET During the regular trading session, Wall Street stocks had already sold off sharply. The Dow Jones Industrial Average had closed down 1.90% while the S&P 500 finished down 2.71%, and the Nasdaq Composite lost 3.56% on the day. The S&P 500 and the Nasdaq recorded their largest single-day percentage drops since April 10. The selloff raises concerns that high stock market valuations propelled by enthusiasm over artificial intelligence might lead to a significant downturn. The S&P 500 and the Nasdaq hit record highs on Thursday and are up about 11% and 15%, respectively, in 2025. The Dow has gained about 7% year-to-date. Sky-high valuations have rekindled memories of the late 1990s dotcom bubble that burst in 2000. JPMorgan Chase CEO Jamie Dimon, in a BBC interview on Wednesday, warned of a heightened risk of a significant Wall Street correction within the next six months to two years. "With equities at high valuations, this selloff is a sign of jitters," said Gene Goldman, chief investment officer at Cetera Investment Management. "Everything is priced for perfection, so the uncertainty increases market jitters. All of this adds uncertainty to economic growth." In April, Trump's announcement of what he called Liberation Day tariffs stunned markets and sent investors scrambling, causing S&P 500 companies to shed a combined $2.4 trillion in market value. But some investors say the latest U.S.-China trade tensions are unlikely to significantly change the market trajectory, with AI remaining the driving factor. "This is definitely a significant issue, and it could warrant a pullback but I don't necessarily see it derailing the AI theme that's been driving the market," said James St. Aubin, chief investment officer at Ocean Park Asset Management. (Reporting by Chibuike Oguh in New York; additional reporting by Noel Randewich in San Francisco, Sinead Carew in New York; Editing by Alden Bentley, Rod Nickel and David Gregorio)

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By Steve Holland and Michael Erman WASHINGTON (Reuters) -President Donald Trump unveiled a deal with UK-based drugmaker AstraZeneca on Friday under which the company will sell some medicines at a discount to the government's Medicaid health plan in exchange for tariff relief, similar to a drug pricing pact reached last week with Pfizer. The deals set a framework the White House will use to try to reach its goal of lowering U.S. prescription medicine prices. The president sent letters to 17 leading drugmakers in July telling them to slash prices. Pfizer and Astra are the first two companies to reach a deal with the administration. AstraZeneca will also offer some of its drugs at up to 80% off their list price through the TrumpRx website planned for next year, CEO Pascal Soriot said at an event in the Oval Office. He said the company will receive a three-year tariff exemption "to localize the remainder of our products." HIGHEST PRESCRIPTION DRUG PRICES U.S. patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere or face stiff tariffs. Last month, Trump threatened 100% tariffs, ratcheting up pressure on the pharmaceutical industry to agree to price cuts and shift manufacturing to the U.S., after negotiations broke down earlier this year, lobbyists and executives told Reuters following the Pfizer deal. More than 70 million people are covered by Medicaid, the state and federal government program for low-income people. Drug spending in that program is dwarfed by that of Medicare, which covers people aged 65 and older or those with disabilities and is not included in Friday's announcement. Medicare's drug spending reached $216 billion in 2021, while Medicaid's gross spending was around $80 billion. The Medicaid program already receives the lowest drug prices in the U.S., so the additional savings may be modest, said Craig Garthwaite, a professor at Northwestern University's Kellogg School of Management. "If you look at AstraZeneca's portfolio, I don't think there are a bunch of drugs that exist where that's going to involve them giving a very big discount to Medicaid," Garthwaite said. AstraZeneca's Pfizer‑like deal may spare it tariffs, but will not move the needle on U.S. rising health insurance premiums and out‑of‑pocket drug costs, said Rena Conti, an associate professor at Boston University. "It's good for the companies, and has very uncertain if any benefit for Americans struggling with the affordability of prescription drugs," Conti said. ASTRAZENECA ALREADY PLEDGED MANUFACTURING MOVE Soriot has worked to keep his company close to Washington while pursuing its growth strategy. AstraZeneca in July announced it will invest $50 billion in U.S. manufacturing and research and development by 2030. It will build its biggest site worldwide in Virginia, and expand facilities in five other U.S. states. In September, the company announced it will sell its diabetes and asthma drugs direct to cash-paying U.S. patients at a discount of up to 70% off list prices, another move in response to Trump's pressure campaign. Soriot this year has played up the company's U.S. credentials. He described the Anglo-Swedish firm as a "very American company," highlighting its identity shift toward its largest market. AstraZeneca will list its shares in the United States as well as its current markets in the UK and Europe. (Reporting by Steve Holland in Washington and Michael Erman in New Jersey; Additional reporting by Jarrett Renshaw and Ahmed Aboulenein in Washington, Maggie Fick in London, Patrick Wingrove in New York and Mariam E Sunny in Bengaluru; Editing by Caroline Humer and Bill Berkrot)

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By Steve Holland and Michael Erman WASHINGTON (Reuters) -President Donald Trump unveiled a deal with UK-based drugmaker AstraZeneca on Friday under which the company will sell some medicines at a discount to the government's Medicaid health plan in exchange for tariff relief, similar to a drug pricing pact reached last week with Pfizer. The deals set a framework the White House will use to try to reach its goal of lowering U.S. prescription medicine prices. The president sent letters to 17 leading drugmakers in July telling them to slash prices. Pfizer and Astra are the first two companies to reach a deal with the administration. AstraZeneca will also offer some of its drugs at up to 80% off their list price through the TrumpRx website planned for next year, CEO Pascal Soriot said at an event in the Oval Office. He said the company will receive a three-year tariff exemption "to localize the remainder of our products." HIGHEST PRESCRIPTION DRUG PRICES U.S. patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere or face stiff tariffs. Last month, Trump threatened 100% tariffs, ratcheting up pressure on the pharmaceutical industry to agree to price cuts and shift manufacturing to the U.S., after negotiations broke down earlier this year, lobbyists and executives told Reuters following the Pfizer deal. More than 70 million people are covered by Medicaid, the state and federal government program for low-income people. Drug spending in that program is dwarfed by that of Medicare, which covers people aged 65 and older or those with disabilities and is not included in Friday's announcement. Medicare's drug spending reached $216 billion in 2021, while Medicaid's gross spending was around $80 billion. The Medicaid program already receives the lowest drug prices in the U.S., so the additional savings may be modest, said Craig Garthwaite, a professor at Northwestern University's Kellogg School of Management. "If you look at AstraZeneca's portfolio, I don't think there are a bunch of drugs that exist where that's going to involve them giving a very big discount to Medicaid," Garthwaite said. AstraZeneca's Pfizer‑like deal may spare it tariffs, but will not move the needle on U.S. rising health insurance premiums and out‑of‑pocket drug costs, said Rena Conti, an associate professor at Boston University. "It's good for the companies, and has very uncertain if any benefit for Americans struggling with the affordability of prescription drugs," Conti said. ASTRAZENECA ALREADY PLEDGED MANUFACTURING MOVE Soriot has worked to keep his company close to Washington while pursuing its growth strategy. AstraZeneca in July announced it will invest $50 billion in U.S. manufacturing and research and development by 2030. It will build its biggest site worldwide in Virginia, and expand facilities in five other U.S. states. In September, the company announced it will sell its diabetes and asthma drugs direct to cash-paying U.S. patients at a discount of up to 70% off list prices, another move in response to Trump's pressure campaign. Soriot this year has played up the company's U.S. credentials. He described the Anglo-Swedish firm as a "very American company," highlighting its identity shift toward its largest market. AstraZeneca will list its shares in the United States as well as its current markets in the UK and Europe. (Reporting by Steve Holland in Washington and Michael Erman in New Jersey; Additional reporting by Jarrett Renshaw and Ahmed Aboulenein in Washington, Maggie Fick in London, Patrick Wingrove in New York and Mariam E Sunny in Bengaluru; Editing by Caroline Humer and Bill Berkrot)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Steve Holland and Michael Erman WASHINGTON (Reuters) -President Donald Trump unveiled a deal with UK-based drugmaker AstraZeneca on Friday under which the company will sell some medicines at a discount to the government's Medicaid health plan in exchange for tariff relief, similar to a drug pricing pact reached last week with Pfizer. The deals set a framework the White House will use to try to reach its goal of lowering U.S. prescription medicine prices. The president sent letters to 17 leading drugmakers in July telling them to slash prices. Pfizer and Astra are the first two companies to reach a deal with the administration. AstraZeneca will also offer some of its drugs at up to 80% off their list price through the TrumpRx website planned for next year, CEO Pascal Soriot said at an event in the Oval Office. He said the company will receive a three-year tariff exemption "to localize the remainder of our products." HIGHEST PRESCRIPTION DRUG PRICES U.S. patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere or face stiff tariffs. Last month, Trump threatened 100% tariffs, ratcheting up pressure on the pharmaceutical industry to agree to price cuts and shift manufacturing to the U.S., after negotiations broke down earlier this year, lobbyists and executives told Reuters following the Pfizer deal. More than 70 million people are covered by Medicaid, the state and federal government program for low-income people. Drug spending in that program is dwarfed by that of Medicare, which covers people aged 65 and older or those with disabilities and is not included in Friday's announcement. Medicare's drug spending reached $216 billion in 2021, while Medicaid's gross spending was around $80 billion. The Medicaid program already receives the lowest drug prices in the U.S., so the additional savings may be modest, said Craig Garthwaite, a professor at Northwestern University's Kellogg School of Management. "If you look at AstraZeneca's portfolio, I don't think there are a bunch of drugs that exist where that's going to involve them giving a very big discount to Medicaid," Garthwaite said. AstraZeneca's Pfizer‑like deal may spare it tariffs, but will not move the needle on U.S. rising health insurance premiums and out‑of‑pocket drug costs, said Rena Conti, an associate professor at Boston University. "It's good for the companies, and has very uncertain if any benefit for Americans struggling with the affordability of prescription drugs," Conti said. ASTRAZENECA ALREADY PLEDGED MANUFACTURING MOVE Soriot has worked to keep his company close to Washington while pursuing its growth strategy. AstraZeneca in July announced it will invest $50 billion in U.S. manufacturing and research and development by 2030. It will build its biggest site worldwide in Virginia, and expand facilities in five other U.S. states. In September, the company announced it will sell its diabetes and asthma drugs direct to cash-paying U.S. patients at a discount of up to 70% off list prices, another move in response to Trump's pressure campaign. Soriot this year has played up the company's U.S. credentials. He described the Anglo-Swedish firm as a "very American company," highlighting its identity shift toward its largest market. AstraZeneca will list its shares in the United States as well as its current markets in the UK and Europe. (Reporting by Steve Holland in Washington and Michael Erman in New Jersey; Additional reporting by Jarrett Renshaw and Ahmed Aboulenein in Washington, Maggie Fick in London, Patrick Wingrove in New York and Mariam E Sunny in Bengaluru; Editing by Caroline Humer and Bill Berkrot)

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By Trevor Hunnicutt WASHINGTON (Reuters) -U.S. President Donald Trump on Friday said he was raising tariffs on Chinese exports to the U.S. to 100% and imposing export controls on "any and all critical software" in a reprisal to recently announced export limits by China on rare earth minerals critical to tech and other manufacturing. "Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying," Trump posted on his Truth Social platform. "Also on November 1st, we will impose Export Controls on any and all critical software." An earlier post from Trump on Friday signaled new levies against Chinese goods were in the offing, and threatened to cancel a meeting with President Xi Jinping. That broadside against Beijing sent markets and relations between the world's largest economies into a spiral. Trump, due to meet Xi in about three weeks in South Korea, complained on social media about what he characterized as China's plans to hold the global economy hostage. On Thursday, China dramatically expanded its rare earth element export controls. China dominates the market for such elements, which are essential to tech manufacturing. Trump said there was no reason to hold the previously announced meeting with Xi, which Beijing had never confirmed. The actions signaled the biggest rupture in relations in four months between Beijing and Washington – the world's biggest factory and its biggest consumer. Many questioned whether an uneasy economic detente reached over the summer can survive. It was a swift and dramatic response by Trump, a Republican who has wielded tariffs paid by U.S. importers against friends and foes. It could escalate a trade war that Washington and Beijing paused earlier this year after painstaking diplomacy. Beijing has long called for Washington to abandon unilateral trade restrictions it says undermine global commerce. MARKETS TUMBLE ON TARIFF THREATS China produces over 90% of the world's processed rare earths and rare earth magnets. Many are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Trump's unexpected broadside shook global financial markets, sending the benchmark S&P 500 Index sliding by more than 2%, its biggest one-day drop since April when a steady barrage of tariff announcements by Trump stoked market volatility. Investors fled into the safe haven of gold and U.S. Treasury securities, and the U.S. dollar weakened against a basket of foreign currencies. "Trump's post could mark the beginning of the end of the tariff truce," said Craig Singleton, a China expert at the Foundation for Defense of Democracies. Singleton said Washington viewed China's export control steps as a betrayal. "Beijing appears to have overplayed its hand." In his first social media post on Friday, Trump said China has been sending letters to countries worldwide saying it planned to impose export controls on every element of production related to rare earths. He said he had been contacted by unnamed countries incensed over Beijing's steps and said he was surprised because of the "very good" recent relationship with China. TRUMP CONDEMNS BEIJING'S 'HOSTILE ORDER' Terming China's actions a "hostile order," Trump said he had been forced "to financially counter their move" "For every Element that they have been able to monopolize, we have two," Trump said. His follow-up post announcing the levies made no mention of whether he would meet Xi in coming weeks. But earlier on Friday Trump had said: "I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so." Previously, Trump had said he would meet Xi on the sidelines of the Asia-Pacific Economic Cooperation forum being held in Gyeongju, South Korea, starting October 31. The White House and the Chinese embassy in Washington did not immediately respond to a request for comment. A spokesperson for the U.S. Trade Representative declined comment on what countermeasures Trump was contemplating while a spokesperson for the U.S. Treasury did not immediately respond to a request for comment. The two offices have led talks with Beijing on trade. Economic tensions had been rising in recent days. On Thursday, the Trump administration proposed banning Chinese airlines from flying over Russia on routes to and from the U.S. On Friday, the U.S. Federal Communications Commission said on major U.S. online retail websites have removed millions of listings for prohibited Chinese electronics. China's move on Thursday included adding five new elements as well as dozens of pieces of refining technology to its export-restricting control list. It also required foreign rare earth producers that use Chinese materials to comply with its rules. "Beijing must have concluded that the U.S. was not prepared to make significant concessions on tariffs, export controls or Taiwan," said Scott Kennedy, a China business and economics expert at Washington's Center for Strategic and International Studies think tank. China calculated, he said, that if Trump retaliates, "China will be in a better position to weather the storm, and that the U.S. will be the first to back down." (Reporting by Trevor Hunnicutt; additional reporting by David Brunnstrom, David Lawder and Maiya Keidan; Editing by Caitlin Webber, Deepa Babington and David Gregorio)

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(Reuters) -Bitcoin, the world's largest cryptocurrency by market value, extended declines on Friday after U.S. President Donald Trump escalated his trade conflict with China. Trump on Friday said he was raising tariffs on Chinese exports to the U.S. to 100% and imposing export controls on "any and all critical software" in a reprisal to recently announced export limits by China on rare earth minerals critical to tech and other manufacturing. The spat shook global financial markets, sending the benchmark S&P 500 Index sliding by more than 2%. Bitcoin was last down 8.4% at $104,782 as of 17:20 ET (2120 GMT). Ethereum, the world's second-largest cryptocurrency, fell 5.8% to $3637 at 17:21 ET. (Reporting by Ruchika Khanna in Bengaluru; editing by Diane Craft)

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By Trevor Hunnicutt WASHINGTON (Reuters) -U.S. President Donald Trump revived the trade war against Beijing on Friday, ending an uneasy truce between the two largest economies with promises to sharply hike tariffs in a reprisal against China curbing its critical mineral exports. The president unveiled additional levies of 100% on China's U.S.-bound exports, along with new export controls on "any and all critical software" by November 1, nine days before existing tariff relief is set to expire. Trump also called into question the prospects for a previously announced meeting set for three weeks from now with Chinese President Xi Jinping in South Korea, saying on Truth Social that "now there seems to be no reason to do so." "I haven't canceled," Trump later told reporters at the White House. "I would assume we might have it." Beijing has never confirmed the meeting. The new trade steps were Trump's reaction to China dramatically expanding its rare earth element export controls. China dominates the market for such elements, which are essential to tech manufacturing. "It was shocking," Trump said of China's steps, which did not specifically target Washington. "I thought it was very, very bad." The actions signaled the biggest rupture in relations in six months between Beijing and Washington – the world's biggest factory and its biggest consumer. Many questioned whether an uneasy economic detente reached over the summer can survive. It was a swift and dramatic response by Trump, a Republican who has wielded tariffs paid by U.S. importers against friends and foes. It could escalate a trade war that Washington and Beijing paused earlier this year after painstaking diplomacy. Experts said restrictions on U.S. software shipments to China could be a massive blow to the country's tech industry, including cloud computing and artificial intelligence. Trump also threatened new export controls on airplanes and airplane parts, and a person familiar with the matter said the administration was sketching out other possible targets. Beijing has long called for Washington to abandon unilateral trade restrictions it says undermine global commerce. MARKETS DIVE ON NEW THREATS Trump's trade threats – delivered in a series of social media posts and a public back-and-forth with reporters – sent markets and relations between the world's largest economies into a spiral. China produces over 90% of the world's processed rare earths and rare earth magnets. Many are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Trump's unexpected broadside shook global financial markets, sending the benchmark S&P 500 Index sliding by more than 2%, its biggest one-day drop since April when a steady barrage of tariff announcements by Trump stoked market volatility. Investors fled into the safe haven of gold and U.S. Treasury securities, and the U.S. dollar weakened against a basket of foreign currencies. Tech stocks piled on losses in after-market trading after Trump detailed the tariff and export control measures. "Trump's post could mark the beginning of the end of the tariff truce," said Craig Singleton, a China expert at the Foundation for Defense of Democracies. Singleton said Washington viewed China's export control steps as a betrayal. "Beijing appears to have overplayed its hand." In his first social media post on Friday, Trump said China has been sending letters to countries worldwide saying it planned to impose export controls on every element of production related to rare earths. The reference to letters was an apparent reference to Beijing's policy papers. Trump said he had been contacted by unnamed countries incensed over Beijing's steps and said he was surprised because of the "very good" recent relationship with China. TRUMP CONDEMNS BEIJING'S 'HOSTILE ORDER' Terming China's actions a "hostile order," Trump said he had been forced "to financially counter their move." "For every Element that they have been able to monopolize, we have two," Trump said. The White House and the Chinese embassy in Washington did not respond to a request for comment. A spokesperson for the U.S. Trade Representative declined comment on what countermeasures Trump was contemplating while a spokesperson for the U.S. Treasury did not respond to a request for comment. The two offices have led talks with Beijing on trade. Economic tensions had been rising in recent days. On Thursday, the Trump administration proposed banning Chinese airlines from flying over Russia on routes to and from the U.S. On Friday, the U.S. Federal Communications Commission said on major U.S. online retail websites have removed millions of listings for prohibited Chinese electronics. China's move on Thursday included adding five new elements as well as dozens of pieces of refining technology to its export-restricting control list. It also required foreign rare earth producers that use Chinese materials to comply with its rules. Analysts said the stakes had risen for a positive outcome from a Trump-Xi summit, if it still happens, on the sidelines of the Asia-Pacific Economic Cooperation forum starting October 31 in South Korea. "Things are going to get interesting," said Scott Kennedy, a China business and economics expert at Washington's Center for Strategic and International Studies think tank. "They both are hoping that amping up pressure will lead the other to make concessions in advance of APEC, or they are now re-escalating assuming a deal at APEC is impossible and are gaining leverage for the next round of the fight." (Reporting by Trevor Hunnicutt; additional reporting by David Brunnstrom, Jarrett Renshaw, Steve Holland, David Lawder and Maiya Keidan; Editing by Dan Burns, Deepa Babington and David Gregorio)

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By Dan Catchpole and Steve Holland WASHINGTON (Reuters) -The United States could impose export controls on Boeing plane parts as part of Washington's response to Chinese export limits on rare earth minerals, President Donald Trump said on Friday. Trump has frequently used Boeing in his aggressive efforts to reshape global trade since taking office in January. During clashes with Trump over trade, Beijing in April ordered Chinese airlines to temporarily stop taking deliveries of new Boeing jets. The planemaker has also landed several large sales from foreign carriers following visits by Trump. "We have many things, including a big thing is airplane. They (China) have a lot of Boeing planes, and they need parts, and lots of things like that," Trump told reporters at the White House, when asked what items could the U.S. impose export controls on. The planemaker is in talks to sell as many as 500 jets to China, Bloomberg reported in August. It would be the U.S. planemaker's first major Chinese order since Trump's first term in office. Even if that falls through, the financial hit to Boeing will likely be small, said Scott Hamilton, an aerospace analyst with Leeham Co. "It's sandpaper on Boeing's hide." Historically, China made up as much as 25% of Boeing's order book, but today it is less than 5%.  Chinese airlines have orders for at least 222 Boeing jets, according to Cirium, an aviation analytics company. The country has 1,855 Boeing airplanes in service. The vast majority of planes on order and in service are Boeing's popular 737 single-aisle jet. A ban on spare parts or exports would also hit CFM International, the joint venture between GE Aerospace and France's Safran, which makes the LEAP engine used on the Boeing 737 MAX. GE also makes engines for the 777 and 787, two larger jets that China has ordered. Boeing's European rival Airbus has only 185 orders from Chinese customers, according to Cirium. Airbus has a production facility in Tianjin, which turns out about four of its single-aisle A320 jets a month.  China is trying to jumpstart its own commercial jetliner industry, largely with the COMAC C919, a competitor to the A320 and 737. Chinese customers have ordered 365 of the domestically-built jet, according to Cirium. U.S. export controls on Western-supplied parts for the C919 have significantly slowed production of that aircraft. As of September, COMAC had delivered only five of the 32 jets Chinese customers expect this year. (Reporting by Steve Holland in Washington and Dan Catchpole in Seattle; Writing by Ismail Shakil; Editing by Chris Reese and William Mallard)

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