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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)

(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)

(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 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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By Prakhar Srivastava (Reuters) -Corporate travel and expense company Navan said on Friday it is targeting a valuation of up to $6.45 billion in its U.S. initial public offering, below the level it reached in a 2022 funding round, as it pushes ahead with listing plans despite the U.S. government shutdown. The Palo Alto, California-based firm plans to raise about $960 million by offering 36.92 million shares priced between $24 and $26 apiece. Its shares are expected to begin trading on the Nasdaq under the "NAVN" ticker symbol. The offering comes amid a rebound in U.S. IPO activity, driven by easing market volatility, which is lifting investor sentiment after a period of trade policy uncertainty. The strong market debuts of Alliance Laundry and Phoenix Education Partners on Thursday underscored renewed appetite for risk among investors. Still, the U.S. government shutdown threatens to stall the recovery, with the Securities and Exchange Commission suspending IPO reviews and other regulatory approvals as it is operating with limited staff. "The IPO comes amid heightened volatility in equities in general and big weakness in some of this year's U.S. IPO vintage," said Josef Schuster, CEO of IPO research firm IPOX. "While IPO sentiment remains positive overall, we expect this to weigh on IPO demand going forward," Schuster added. "We therefore believe that issuers need to be flexible to potentially accommodate this changing market environment with more attractive offering terms." Navan was valued at $9.2 billion in 2022 after raising $300 million in a Series G funding round. Founded in 2015 as TripActions by Ariel Cohen and Ilan Twig, Navan initially focused on corporate travel management, aiming to modernize services traditionally provided by companies such as American Express and SAP Concur. Over the years, Navan has expanded into corporate payments and expense management, and spread its tentacles across the world, serving global clients including Zoom Communications and Lyft, according to its website. Goldman Sachs, Citigroup, Jefferies, Mizuho and Morgan Stanley are among the underwriters for the offering. (Reporting by Prakhar Srivastava in Bengaluru; Editing by Alan Barona)

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By Stephen Culp NEW YORK (Reuters) -Wall Street slumped on Friday after U.S. President Donald Trump escalated his trade conflict with China after Beijing tightened its rare earth restrictions. Late on Friday after Wall Street's official trading session, Trump said he would impose an additional 100% tariff on imports from China, as well as export controls on critical U.S.-made software, an announcement that sent Big Tech shares tumbling. Nvidia, Tesla, Amazon and Advanced Micro Devices all fell more than 2% after the bell. Those losses added to already steep declines during Friday's trading session after Trump warned in a post on Truth Social earlier in the day that he was weighing a "massive" tariff increase on Chinese imports and said there is no reason to meet with China's President Xi Jinping in two weeks as planned, adding that there are "many other countermeasures" under consideration. Trump's latest move against China shocked markets and threatened further damage to already strained relations between the world's two largest economies. All three major U.S. stock indexes sold off sharply during Friday's session before stocks extended losses after the bell. The S&P 500 and the Nasdaq suffered their largest single-day percentage drops since April 10. On a weekly basis, the S&P 500 logged its biggest drop since May, while the Nasdaq's Friday-to-Friday decline was its steepest since April. "The second largest economy and the first largest economy are arguing again, and we're seeing a sell first, ask questions later mentality to end the week," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "President Trump's post did truly come out of nowhere, which opened the door for some extreme volatility." "And it's important to remember we haven't had this level of volatility in a long time," Detrick added. "One could argue we were due for some spookiness this October." Trump's erratic trade policies have rattled markets since his April 2 "Liberation Day" tariff announcement, with on-again, off-again trade negotiations, causing turbulence across asset classes. The Dow Jones Industrial Average fell 878.82 points, or 1.90%, to 45,479.60, the S&P 500 lost 182.60 points, or 2.71%, to 6,552.51 and the Nasdaq Composite lost 820.20 points, or 3.56%, to 22,204.43.  The Philadelphia Stock Exchange Semiconductor Index dropped 6.3%, in the wake of Trump's announcement. China produces over 90% of the world's processed rare earths and rare earth magnets, which are critical for products ranging from electric vehicles and aircraft engines to military radars. An escalating trade war between the two largest global economies could trigger major supply chain disruptions, particularly for the technology, electric vehicle and defense industries. The CBOE Volatility Index, viewed as a reflection of market anxiety, reached its highest closing level since June 19. U.S.-listed shares of Chinese companies dropped sharply, with heavyweights Alibaba Group Holding, JD.com Inc and PDD Holdings down between 5.3% and 8.5%. Qualcomm fell 7.3% after China's market regulator said the country had launched an antitrust investigation into the semiconductor manufacturer over its acquisition of Israel's Autotalks. The U.S. government is currently in its 10th day of shutdown as a congressional impasse has so far yielded few signs of progress or serious negotiation. This has resulted in a data blackout, with official government economic indicators postponed for the time being. Still, data from independent sources continues unabated. The University of Michigan released its preliminary take on October consumer sentiment, which is drifting along near historic lows as high prices and weakening job prospects remain at the forefront of consumer worries. In the absence of official data, investors look to the U.S. Federal Reserve for clues regarding near-term interest rate cuts. Fed Governor Christopher Waller said that while private employment data continues to show labor market weakness, the central bank should act with caution when reducing the Fed funds target rate as it evaluates the economy. St. Louis Fed President Alberto Musalem echoed that sentiment, saying that another rate cut could be warranted as insurance against a weakening labor market. "I believe that we have to tread with caution" before monetary policy becomes too accommodative, he said. A spate of large financial firms – including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo – is set to release quarterly results on Tuesday, marking the unofficial launch of third-quarter earnings season. Analysts currently expect third-quarter S&P 500 earnings growth of 8.8% year-on-year, on aggregate, compared with annual growth of 13.8% last quarter and 9.1% in Q3 2024, according to LSEG data. Declining issues outnumbered advancers by a 4.36-to-1 ratio on the NYSE. There were 215 new highs and 167 new lows on the NYSE. On the Nasdaq, 799 stocks rose and 3,936 fell as declining issues outnumbered advancers by a 4.93-to-1 ratio. The S&P 500 posted 18 new 52-week highs and 19 new lows while the Nasdaq Composite recorded 102 new highs and 145 new lows. Volume on U.S. exchanges was 24.26 billion shares, compared with the 20.15 billion average for the full session over the last 20 trading days.  (Reporting by Stephen Culp; Additional reporting by Niket Nishant, Sukriti Gupta, Purvi Agarwal and Johann M Cherian in Bengaluru; Additional reporting by Noel Randewich in San Francisco; Editing by Aurora Ellis and Diane Craft)

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By Stephen Culp NEW YORK (Reuters) -Wall Street slumped on Friday after U.S. President Donald Trump escalated his trade conflict with China after Beijing tightened its rare earth restrictions. Late on Friday after Wall Street's official trading session, Trump said he would impose an additional 100% tariff on imports from China, as well as export controls on critical U.S.-made software, an announcement that sent Big Tech shares tumbling. Nvidia, Tesla, Amazon and Advanced Micro Devices all fell more than 2% after the bell. Those losses added to already steep declines during Friday's trading session after Trump warned in a post on Truth Social earlier in the day that he was weighing a "massive" tariff increase on Chinese imports and said there is no reason to meet with China's President Xi Jinping in two weeks as planned, adding that there are "many other countermeasures" under consideration. Trump's latest move against China shocked markets and threatened further damage to already strained relations between the world's two largest economies. All three major U.S. stock indexes sold off sharply during Friday's session before stocks extended losses after the bell. The S&P 500 and the Nasdaq suffered their largest single-day percentage drops since April 10. On a weekly basis, the S&P 500 logged its biggest drop since May, while the Nasdaq's Friday-to-Friday decline was its steepest since April. "The second largest economy and the first largest economy are arguing again, and we're seeing a sell first, ask questions later mentality to end the week," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "President Trump's post did truly come out of nowhere, which opened the door for some extreme volatility." "And it's important to remember we haven't had this level of volatility in a long time," Detrick added. "One could argue we were due for some spookiness this October." Trump's erratic trade policies have rattled markets since his April 2 "Liberation Day" tariff announcement, with on-again, off-again trade negotiations, causing turbulence across asset classes. The Dow Jones Industrial Average fell 878.82 points, or 1.90%, to 45,479.60, the S&P 500 lost 182.60 points, or 2.71%, to 6,552.51 and the Nasdaq Composite lost 820.20 points, or 3.56%, to 22,204.43.  The Philadelphia Stock Exchange Semiconductor Index dropped 6.3%, in the wake of Trump's announcement. China produces over 90% of the world's processed rare earths and rare earth magnets, which are critical for products ranging from electric vehicles and aircraft engines to military radars. An escalating trade war between the two largest global economies could trigger major supply chain disruptions, particularly for the technology, electric vehicle and defense industries. The CBOE Volatility Index, viewed as a reflection of market anxiety, reached its highest closing level since June 19. U.S.-listed shares of Chinese companies dropped sharply, with heavyweights Alibaba Group Holding, JD.com Inc and PDD Holdings down between 5.3% and 8.5%. Qualcomm fell 7.3% after China's market regulator said the country had launched an antitrust investigation into the semiconductor manufacturer over its acquisition of Israel's Autotalks. The U.S. government is currently in its 10th day of shutdown as a congressional impasse has so far yielded few signs of progress or serious negotiation. This has resulted in a data blackout, with official government economic indicators postponed for the time being. Still, data from independent sources continues unabated. The University of Michigan released its preliminary take on October consumer sentiment, which is drifting along near historic lows as high prices and weakening job prospects remain at the forefront of consumer worries. In the absence of official data, investors look to the U.S. Federal Reserve for clues regarding near-term interest rate cuts. Fed Governor Christopher Waller said that while private employment data continues to show labor market weakness, the central bank should act with caution when reducing the Fed funds target rate as it evaluates the economy. St. Louis Fed President Alberto Musalem echoed that sentiment, saying that another rate cut could be warranted as insurance against a weakening labor market. "I believe that we have to tread with caution" before monetary policy becomes too accommodative, he said. A spate of large financial firms – including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo – is set to release quarterly results on Tuesday, marking the unofficial launch of third-quarter earnings season. Analysts currently expect third-quarter S&P 500 earnings growth of 8.8% year-on-year, on aggregate, compared with annual growth of 13.8% last quarter and 9.1% in Q3 2024, according to LSEG data. Declining issues outnumbered advancers by a 4.36-to-1 ratio on the NYSE. There were 215 new highs and 167 new lows on the NYSE. On the Nasdaq, 799 stocks rose and 3,936 fell as declining issues outnumbered advancers by a 4.93-to-1 ratio. The S&P 500 posted 18 new 52-week highs and 19 new lows while the Nasdaq Composite recorded 102 new highs and 145 new lows. Volume on U.S. exchanges was 24.26 billion shares, compared with the 20.15 billion average for the full session over the last 20 trading days.  (Reporting by Stephen Culp; Additional reporting by Niket Nishant, Sukriti Gupta, Purvi Agarwal and Johann M Cherian in Bengaluru; Additional reporting by Noel Randewich in San Francisco; Editing by Aurora Ellis and Diane Craft)

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