U.S. stock markets dropped dramatically Monday after China announced retaliatory tariff increases on $60 billion of U.S. goods.


The Dow Jones Industrial Average sank 617 points, or 2.4 percent, falling to 25,324 and returning to a level it first reached in January of 2018.


The S&P 500 sank a similar 2.4 percent, closing down 70 points.


The stock market jitters come amid increased trade tensions between the United States and China.


President Trump raised tariffs from 10 percent to 25 percent on $200 billion of Chinese imports to the United States last week after the two sides failed to reach a deal to end the tariffs.


China responded by raising its own tariffs on $60 billion worth of American goods.


The fighting led to Monday's sell-off, and has traders worried about further losses in the days and weeks ahead.


Trump has defended his tough line with China, arguing it will leverage Beijing into a favorable deal for the United States.


“We’re in a great position right now, no matter what we do,” he told reporters attending an event he held at the White House on Monday with Hungary's prime minister.


Trump also said he would be meeting with Chinese President Xi Jinping next month and pressed confidence a deal could be worked out.


“Yeah, I think China wants to have it," he said. Read more at The Hill