Trump raises Steel Tariffs to 50% to Protect U.S. Jobs

Hello, Market Reader’s

In a remarkable turnaround, the S&P 500 soared 6.2% in May, marking its strongest performance for the month since 1990. This rebound follows three consecutive months of declines, bringing the index modestly into positive territory for the year, closing at 5,911.69. The tech-heavy Nasdaq outpaced with a 9.6% gain, its best May since 1997, while the Dow added 3.9%.

Mid-month optimism was fueled by a temporary easing of U.S.-China trade tensions, including a 90-day tariff reprieve. However, investor sentiment wavered as President Trump accused China of violating the agreement, reigniting tariff concerns and market volatility. Despite these fluctuations, a cooling inflation report, April's core PCE rose 2.5% year-over-year provided some reassurance .

As markets navigate this "tariff tango," the question remains: Can the momentum sustain amid policy uncertainties? Investors are advised to stay vigilant, balancing optimism with caution as the global economic landscape continues to evolve.

Today’s Global Menu

• Focal Point

• Frontier News

• World Markets

• Crypto World

Focal Point

Trump Doubles Down: Steel Tariffs Surge to 50% Amid Nippon Deal Buzz

In a bold move to fortify American steel, President Trump announced a tariff hike on imported steel and aluminum from 25% to a striking 50% effective June 4. This declaration came during a rally at U.S. Steel's Pennsylvania plant, coinciding with the unveiling of a $14 billion investment plan by Japan's Nippon Steel. Trump emphasized that the deal would preserve U.S. control, promising no layoffs and bonuses for workers.

However, the tariff escalation has drawn sharp criticism. The European Commission expressed "strong regret," warning of potential countermeasures and increased costs for consumers. Canada's Chamber of Commerce labeled the move as detrimental to North American economic security.

As the global community braces for the ripple effects, questions loom: Will this protectionist stance bolster domestic industry or ignite a trade war with far-reaching consequences?

World Markets

🛒 Costco Earnings: Costco reported its fiscal Q3 2025 earnings, showcasing robust sales growth driven by strong membership renewals and increased foot traffic. However, the company's profit margins faced pressure due to rising operational costs and supply chain challenges. Investors are watching closely to see how Costco navigates these headwinds while maintaining its value proposition.

💻 Nvidia Surge: Nvidia's Q1 2026 earnings highlighted a 69% year-over-year revenue growth, fueled by surging demand in data centers and AI applications. Despite facing a $4.5 billion inventory impairment and export restrictions, the company remains profitable and well-positioned for future AI-driven demand. Analysts maintain a strong buy rating, citing Nvidia's compelling valuation and long-term growth prospects.

🎤 Taylor Swift Wins: In a landmark move, Taylor Swift has successfully regained ownership of her first six albums, including all associated content. This victory concludes a years-long battle over her master recordings, initially sold without her consent. Swift's determination and fan support have not only restored her artistic control but also sparked broader discussions about artists' rights in the music industry.

FRONTIER NEWS

1. U.S. Court Blocks Trump's Government Overhaul
In a significant legal setback, a U.S. appeals court has upheld a lower court's decision to block President Trump's sweeping government restructuring plan. The plan aimed to eliminate tens of thousands of federal jobs and close numerous agencies. The court ruled that such actions require Congressional approval, emphasizing the constitutional limits of executive power.

2. China's Factory Activity Contracts in May
China's manufacturing sector experienced a contraction in May, with the Purchasing Managers' Index (PMI) rising slightly from 49.0 in April to 49.5.

3. China Urges End to Auto Industry Price Wars
The Chinese government has called for an end to aggressive price wars in the automotive industry, particularly among electric vehicle manufacturers. The Ministry of Industry and Information Technology emphasized the need for fair competition and sustainable development, warning that excessive price cuts could harm the industry's long-term health. Major players like BYD, Geely, and Chery have been engaged in intense discounting battles.

4. Sliding Oil Prices Reopen Door to Russian Crude
Declining oil prices have led Greek shipping companies to resume transporting Russian crude oil, exploiting a legal loophole that allows trade below $60 per barrel despite Western sanctions. Russian oil is currently trading around $50, making it economically viable for these firms.

Crypto World

📉 Bitcoin Dips to $105K Amid Trump's Tough Talk: Bitcoin's price fell to $105,000 following former President Trump's declaration that he's "no longer Mr. Nice Guy," signaling potential policy shifts that unsettled investors. The cryptocurrency market reacted swiftly, highlighting its sensitivity to political rhetoric and the ongoing debate over regulatory approaches.

🧠 OCC Advocates for Enhanced Crypto Financial Literacy: The U.S. Office of the Comptroller of the Currency (OCC) is urging a significant boost in financial literacy to help consumers navigate the rapidly evolving digital asset landscape. Recognizing the complexities and risks associated with cryptocurrencies, the OCC emphasizes the need for updated educational strategies to protect investors and ensure informed participation in the crypto market.

📉 Ethereum's Momentum Wanes: Is a Drop to $2K Imminent?: Ethereum is currently consolidating below the $2,800 resistance level, with technical indicators suggesting weakening bullish momentum. Analysts warn that failure to break above this threshold could lead to a retest of the $2,200 support zone, and potentially a further decline toward $2,000 if bearish trends persist.

🧪 Ripple Urges SEC to Implement Real-World Crypto Sandboxes: Ripple is advocating for the U.S. Securities and Exchange Commission (SEC) to establish real-world regulatory sandboxes for cryptocurrencies. These controlled environments would allow for innovation and testing of digital asset products while ensuring compliance and consumer protection, aiming to bridge the gap between rapid technological advancements and regulatory frameworks.

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