WASHINGTON - A deepening trade war between the United States and China caused the Dow Jones Industrial Average to plunge on Monday, and raised not just pessimism over trade but also worries over the direction of US-China relations.

The latest round of tariffs are "far too great a gamble for the US economy", the National Retail Federation said in a statement. "Taxing Americans on everyday products like clothes and shoes is not the answer for holding China accountable.