New York (CNN Business) The Trump administration is taking stocks on a roller coaster ride. Investors are not pleased.

Stock markets that had been closed on Monday were the hardest hit. Japan's Nikkei shed 1.5% as investors reacted to President Donald Trump's threat on Sunday to escalate tariffs on $200 billion of Chinese goods.

Benchmark indexes in Seoul and London, which were also closed on Monday, dropped by 0.9% and 1.6%, respectively.

US stock markets moved lower for a second consecutive session on Tuesday. The Dow was down 1.3%, or nearly 350 points, in early trade. The S&P 500 shed 1.4% and the Nasdaq dropped 1.5%.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin told reporters Monday that China had reneged on previous agreements, undermining progress towards a detailed trade agreement.

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