Dow Stumbles 200 Points as Geopolitical Tension Rattles Traders

Markets flinch as Trump-Xi phone tag continues and EU fires warning shots. Another day, another excuse for Wall Street to sweat.

Traditional finance wobbles while crypto traders shrug—proving once again that decentralized assets don’t wait for permission slips from politicians.

EU threatens retaliatory tariffs on U.S.

At the same time, the European Union may impose retaliatory tariffs on the U.S. On Monday, June 2, the European Commission stated that it “deeply regrets” the latest 50% tariffs on steel and aluminum imposed by the U.S.

The Commission warned that the MOVE increases market uncertainty and could negatively affect consumers in both the EU and the U.S. It added that the bloc is prepared to “impose countermeasures,” likely in the form of retaliatory tariffs.

Trade uncertainty is also undermining the U.S. dollar. On Monday, June 2, the dollar index fell to 98.88 points, the second-lowest level seen since 2022. Investors appear to be pricing in prolonged trade negotiations and potential fallout from a wider global trade conflict.