South Korean stocks lost more than three percent on Thursday amid concerns that the U.S. will slap new tariffs on Chinese imports.

The benchmark Korea Composite Stock Price Index(KOSPI) lost 66 points, or three-point-04 percent, ending the day at two-thousand-102-point-01. The figure is the lowest since January 15th of this year.

The tech-heavy KOSDAQ also fell, losing 21-point-15 points, or two-point-84 percent, to close at 724-point-22.  

On the foreign exchange, the local currency also weakened ten-point-four won against the dollar, ending the session at one-thousand-179-point-eight won.

The market plummeted as the Office of the U.S. Trade Representative announced that Washington will increase tariffs on Chinese goods worth 200 billion dollars from ten percent to 25 percent starting from 12:01 a.m. Friday, Eastern Standard Time. 

U.S. President Donald Trump claimed China broke a trade deal that he was negotiating with Beijing. Speaking at a reelection rally in Panama City Beach, Florida on Wednesday, he said the breach was why he plans to increase tariffs on Chinese goods.

Though noting that a Chinese delegation was traveling to Washington to discuss trade, the U.S. president said there’s “nothing wrong with taking in 100 billion dollars a year” in tariffs on Chinese imports in the absence of a trade accord. 

A Chinese delegation headed by Vice Premier Liu He is set to hold high-level talks with U.S. officials in Washington on Thursday and Friday.