The Latest: Shares dive as Trump tweets rattle investors

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People walk past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, May 6, 2019. Shares tumbled in Asia early Monday after President Donald Trump threatened in a tweet to impose more tariffs on China, spooking investors who had been expecting good news on trade. (AP Photo/Vincent Yu)

The Latest on reaction to President Donald Trump's threat to raise tariffs on imports from China to 25% as of this coming Friday (all times local):

3:40 p.m.

China's benchmark Shanghai Composite index has closed 5.6% lower after President Donald Trump said he planned to raise tariffs in a dispute with Beijing.

The threat, conveyed via Twitter, dashed expectations that the two biggest economies might forge a deal in talks this week.

U.S. futures sank ahead of Monday's market opening, with the future contract for the Dow Jones Industrial Average shedding 1.8% to 26,019.00. S&P 500 futures declined 1.7% to 2,897.00.

Elsewhere, shares fell in Paris and Frankfurt. The Shenzhen A-share index, which includes many smaller companies, tumbled 7.4% on Monday while the Hang Seng in Hong Kong dropped 2.9%.

Markets were closed in Japan and South Korea for holidays.

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12:30 p.m.

Chinese share benchmarks have plummeted more than 5% as threats by President Donald Trump to raise tariffs in the trade war with Beijing raised doubts over the likelihood of a deal between the two biggest economies.

The Shanghai Composite index plunged 5.8% to 2,906.33 while the Shenzhen A-share index, which includes many smaller companies, tumbled 6.2%.

In Hong Kong, the Hang Seng dropped 3.2% to 29,117.32.

Chinese government offices did not immediately respond to requests for comment on Trump's suggestion the U.S. would raise import taxes on $200 billion in Chinese products to 25% from 10% as of Friday.

The tweets followed comments by U.S. trade negotiators suggesting the two sides might reach a deal this week on their dispute over Chinese industrial policy and technology.

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10:00 a.m.

Shares tumbled in Asia early Monday after President Donald Trump threatened in a tweet to impose more tariffs on China.

The Shanghai Composite index sank 4.8% and the Hang Seng in Hong Kong plunged 3.5%. Markets were closed in Japan. The future contract for the Dow Jones Industrial Average fell 1.9% to 25,996.00, while that for the S&P 500 also shed 1.9%, to 2,892.00.

Trump's comments came a Chinese delegation was due to resume talks in Washington on Wednesday aimed at resolving a tariffs battle that has rattled world markets.

Apparently catching Beijing by surprise, Trump said he would raise import taxes on $200 billion in Chinese products to 25% from 10%.

The Wall Street Journal, citing unidentified sources, said China's government was considering canceling this week's talks.