Wall Street kicked off Monday, June 2nd, 2025, in the red after former President Donald Trump reignited trade tensions by threatening to double tariffs on imported steel and aluminum.

This is a move that sent a shiver down investor spines and knocked U.S. indexes off balance.

At the opening bell, the Dow Jones Industrial Average slipped 70 points, the S&P 500 dropped 15 points, and the Nasdaq Composite fell nearly 51 points. It’s a classic case of markets hating uncertainty, and Trump just added a big dose of it.

Tariff Talk Is Back… And So Are Trade Jitters

In a post on his Truth Social platform, Trump hinted at an aggressive trade stance should he return to the White House, saying he would double down on steel and aluminum tariffs to “protect American jobs” and rebuild U.S. manufacturing strength.

The problem? Markets have seen this movie before, and it doesn’t end well for global investors. The last time tariffs dominated headlines, supply chains got snarled, input costs soared, and corporate earnings took a hit.

Now, with Trump looking like a serious 2024 contender, investors are pricing in the possibility of a second trade war, or at least a more volatile policy landscape.

This latest move adds pressure on an already cautious market. While the S&P 500 recently touched record highs, investors have been treading carefully, balancing hopes of Fed rate cuts against inflation concerns and a mixed economic outlook.

Trump’s tariff threat is a fresh wildcard.

Steel and aluminum stocks may get a short-term boost on speculation of domestic demand. Multinationals and manufacturers could see pressure if import costs rise again.
Commodities and infrastructure ETFs might catch some momentum.

Whether you’re bullish, bearish, or just tired of trade war drama, Trump’s tariff rhetoric is a reminder that politics and markets are deeply intertwined. As the 2024 election cycle heats up, investors should brace for more headlines like this, and more market chop to match.