Trump tariffs have once again rattled global financial markets, shaking investor confidence and driving a sharp pivot toward safe-haven assets. The latest tariff threats, especially those targeting steel and aluminum, have sent stocks falling across multiple regions.
During the Asian session, traders quickly offloaded risky assets. As a result, gold prices jumped by $60, now hovering around $3,350 per ounce. This surge highlights investor anxiety over uncertain U.S. trade policies.
Markets had already been uneasy due to ongoing legal debates surrounding Trump tariffs, which remain at historic highs. These measures are raising fears that the United States could slip into a recession. The situation intensified after President Trump proposed raising specific import duties from 50% to 250%.
In response, steel and aluminum stocks across Asia dropped sharply. Meanwhile, U.S. equity futures also declined, with the S&P 500 falling by 0.5%. European markets opened weak, with early trading on the STOXX 600 index down by 0.2%.
The impact of Trump tariffs was evident in European manufacturing stocks. ArcelorMittal shares dropped by 1%, and Thyssenkrupp followed with a 1.1% loss. Auto companies faced similar pressure, with their sector index slipping 1.2%.
Currency markets also reflected the shift in sentiment. The U.S. Dollar Index remained under pressure. However, the Japanese Yen strengthened as traders sought safety. At the same time, crude oil prices climbed after OPEC+ announced smaller-than-expected production increases.
Meanwhile, private surveys from Asia showed that regional factory activity weakened in May. Soft demand from China and U.S. trade measures weighed on output. This downturn signals a worsening outlook for export-heavy economies in the region. While Swiss GDP data added to the mixed signals. The Swiss economy expanded by 0.5% in the first quarter, missing the 0.7% growth estimate.
Looking ahead, global investors will watch PMI data and trade updates closely. Tensions remain high after Trump accused China of not honoring tariff rollback promises. Chinese officials insisted they remain in contact with Washington.
For now, global markets continue to react to every development in the trade dispute. All eyes remain on Washington, Beijing, and how Trump tariffs will shape economic conditions in the coming weeks.
For more updates, visit DC Brief.
