Deere, Caterpillar down after China hits back at Trump tariffs

Shares of industrial equipment makers fall after China to impose additional 34% tariffs on all U.S. goods

China also to impose export restrictions on some rare earths effective April 4

The ban on items related to rare earth elements is the latest demonstration of China's ability to weaponise its dominance in the mining and processing of a host of critical minerals vital to several industries

The move comes after Trump's announcement of imposing 34% tariff on China, on top of the 20% he imposed earlier this year, bringing the total new levies to 54%

Caterpillar CAT.N down 6.7% and Deere & Co DE.N down 5.5% in early trading hours

Including session's move, Dow Jones U.S. Industrials Index .DJUSIN has fallen 11% YTD