Markets lower after Trump doubles steel tariffs
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The news: Global markets wavered Monday after Donald Trump on Friday pledged to double tariffs on imported steel and aluminium to 50% from Wednesday and accused China of violating a trade truce.
Traders were also reacting to the latest data showing US manufacturing contracted for a third month in May.
The context: Beijing rejected the charge and said the US had “seriously undermined” the recent trade truce with “discriminatory and restrictive measures”, including AI chip export controls and visa revocations for Chinese students.
Meanwhile, the European Union warned it would impose countermeasures if Trump’s plan to double steel and aluminium tariffs proceeds.
The numbers: The Dow was 0.45% in around noon, New York time, the S&P 500 was down 0.11%, while the Nasdaq was edging up 0.22%. . Stocks across Asia and Europe saw modest losses on Monday, with declines seen in steel and car stocks after Trump’s Friday announcement of tariff hikes.
US crude oil futures rose over 3% following a Ukraine drone attack on Russian military airports.
Treasury yields rose as major investors including DoubleLine, Pimco and TCW Group avoided 30-year US Treasuries, citing budget concerns, according to Bloomberg.
Tesla shares were 2.37% after lower May sales in parts of Europe.
The sources: Bloomberg , Wall Street Journal
