NEW YORK (AP) — A monthslong calm on Wall Street is breaking on Friday, and U.S. stocks are falling after President Donald Trump threatened to crank tariffs much higher on China.

The S&P 500 sank 1.5% and was on track for its worst loss since Aug. 1. The Dow Jones Industrial Average dropped 526 points, or 1.1%, after earlier tumbling as many as 597 points. The Nasdaq composite was down 2%, as of 12:15 p.m. Eastern time.

Stocks had been heading for a slight gain in the morning, until Trump took to his social media platform and said he’s considering “a massive increase of tariffs” on Chinese imports. He’s upset at restrictions China has placed on exports of its rare earths, which are materials that are critical for the manufacturing of everything from consumer electronics to jet engines.

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