AMNA NAWAZ: Welcome to the "News Hour."

Markets dropped again today as investors and businesses focused on the escalating trade war between the U.S. and China and what it could mean for the economy.

Markets continued their major slide since mid-February.

The Dow dropped more than 1,000 points, or 2.5 percent.

The Nasdaq fell by 4 percent, and the S&P 500 dropped by nearly 3.5 percent.

For his part, President Trump showed no immediate signs of easing Chinese tariffs.

John Yang begins with this report.

JOHN YANG: Today, stock markets gave back much of what they gained yesterday.

At a Cabinet meeting, President Trump said it's just part of the process.

DONALD TRUMP, President of the United States: There will be a transition cost and transition problems, but in the end it's going to be a beautiful thing.

JOHN YANG: He underscored his willingness to negotiate with trading partners.

DONALD TRUMP: Everybody wants to come and make a deal, and we're working with a lot of different countries, and it's all going to work out very well.

JOHN YANG: One country not showing any interest in making a deal?

China.

Earlier, the White House clarified that the total new tariffs on China stand at 145 percent.

That's because the 125 percent duty announced yesterday is on top of the 20 percent rate levied earlier in response to the fentanyl crisis.

Chinese officials call it bullying.

LIN JIAN, Chinese Foreign Ministry Spokesperson (through translator): Tariff wars and trade wars have no winners.

China doesn't want to fight them, but does not fear them when they come our way.

If the U.S. insists on fighting a tariff war or a trade war, China will fight to the end.

JOHN YANG: After the initial levies were imposed, China responded with an 84 percent tariff on U.S. goods.

On CNBC, Amazon CEO Andy Jassy said many of the platform's third-party sellers, either in China or selling Chinese products, may have to raise prices.

ANDY JASSY, CEO, Amazon: If you made me guess I'm guessing that sellers will pass that cost on.

I think they will try.

And I understand why.

I mean, depending on which country you're in, you don't have 50 percent extra margin.

JOHN YANG: While the 10 percent baseline tariff for most countries remains, the European Union announced it's pausing its retaliatory tariffs in hopes of reaching an agreement with Mr. Trump.

OLOF GILL, Spokesperson, European Commission: We're ready to make deals.

Let's talk.

We believe we can reach all sorts of beneficial outcomes from both sides that would avoid the types of tariffs that we believe are harmful and counterproductive.

JOHN YANG: British Prime Minister Keir Starmer welcomed Mr. Trump's reversal, as far as it goes.

KEIR STARMER, British Prime Minister: Look, I'm very pleased to see the changes in relation to the tariffs.

But the challenge hasn't gone away.

And I don't think this is a passing phase.

I think we're living in a changing world.

JOHN YANG: Meanwhile, some Democrats are raising questions about Mr. Trump's social media post saying "This is a great time to buy" just hours before he announced he was pausing the tariffs, sparking the stock market rally.

SEN. CHRIS MURPHY (D-CT): The chaotic nature of this tariff policy with Trump's position changing every single hour gives ample opportunity for any individual who has early access to information about the White House's change in position to make boatloads of money.

JOHN YANG: On CNN, former Treasury Secretary Janet Yellen said President Trump took a wrecking ball to the economy.

JANET YELLEN, Former U.S. Treasury Secretary: This is the worst self-inflicted wound that I have ever seen in an administration impose.

JOHN YANG: As investors, business executives and consumers try to absorb all of this, the government said inflation slowed in March to 2.4 percent, the lowest rates in September.

The Consumer Price Index data was collected before the president's toughest tariffs.

But economists warn that higher prices as a result of the tariffs could emerge in a matter of months.

For the "PBS News Hour," I'm John Yang.