Global stock markets experienced a downturn on June 2, 2025, following President Trump's announcement of increased tariffs. The decision to raise tariffs on steel and aluminum imports, coupled with ongoing trade tensions with China, has fueled market uncertainty.
In the U.S., the Dow Jones Industrial Average fell by 0.6%, closing at 42,047.12. The S&P 500 also declined, dropping 0.3% to 5,911.69. The Nasdaq composite experienced a slight decrease of 0.5%, settling at 19,113.77. European markets mirrored this trend, with Germany's DAX closing at 23,928.40, a 0.29% decrease.
President Trump's announcement on June 1 included doubling import duties on steel and aluminum to 50%, effective June 4. This action, allegedly prompted by Beijing's backtracking on trade agreements, has heightened concerns. Brent crude oil is currently priced at $64.76 a barrel. The combination of trade uncertainties and geopolitical instability has created a clouded outlook for global economic growth, projected at 3.3 percent for both 2025 and 2026.