New York (CNN Business) President Donald Trump sent shivers through global markets on Monday, with stocks plunging after he threatened new tariffs that would escalate the US-China trade war.

That set US markets up for a rocky start. The Dow dropped 450 points at the open before recovering some of its losses.

Trump renewed threats to raise tariffs on Chinese goods over the weekend, a threat that could derail a round of trade talks with Beijing scheduled to start on Wednesday.

The Wall Street Journal reported that Beijing was considering pulling out of negotiations. A spokesman for the Chinese government said on Monday that a delegation was still preparing to go to the United States.

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