Dow Drops 300 Points as U.S.-China Trade Tensions Flare Up in June Kickoff

The Dow Jones Industrial Average tumbled 301 points on Monday, signaling a rocky start to June as renewed U.S.-China trade tensions rattled markets. The 0.7% decline reflects growing skepticism about the durability of last month’s tariff truce, with China now accusing Washington of violating the agreement. Both the S&P 500 and Nasdaq followed suit, dipping 0.5% and 0.3% respectively.

May’s fragile détente—brokered in Geneva between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng—appears increasingly precarious. The 90-day tariff pause now faces collapse after China’s allegations of U.S. non-compliance. Market participants brace for potential retaliatory measures that could further strain global growth prospects.

Steel tariffs on the EU and weak manufacturing data compounded the bearish sentiment. Investors are scrutinizing every diplomatic signal, aware that crypto markets often decouple from traditional assets during geopolitical turbulence—a dynamic that may favor Bitcoin as a hedge against escalating trade wars.