Washington will not do business with technology giant Huawei unless a trade deal with Beijing is brokered, U.S. President Donald Trump said Friday.
Trump told reporters at the White House before departing for his summer vacation at his New Jersey golf club that the U.S. is currently "not ready to make a deal" and right now "it is much simpler not to do any business with Huawei."
"That doesn't mean we won't agree to something if and when we make a trade deal, but we're not going to be doing business with Huawei," Trump said.
The Dow plummeted more than 270 points in mid-morning trading following Trump's cool assessment of the prospects for a deal.
Trump blacklisted Huawei in May, but granted U.S. technology companies “timely licensing decisions” that allowed them to sell to Huawei.
Trump threatened last Thursday to impose an additional 10% tariffs on $300 billion in Chinese goods unless a trade deal is reached by September, prompting Beijing to retaliate by allowing the Yuan to slide below seven to the dollar, a more than 10-year-low.
The new import duties Trump threatened will be on top of 25% tariffs the U.S. already imposed on $250 billion in Chinese goods.
Financial markets have plunged following Trump's announcement, and fell precipitously after China's retaliation.
The ongoing trade war between the world's top two economies has sent shockwaves through global markets as a trade deal remains highly elusive.
By Michael Hernandez in Washington