TLDR
- US stock futures rose slightly on Wednesday despite Trump implementing 50% tariffs on steel and aluminum imports
- Trump called Chinese President Xi Jinping “extremely hard to make a deal with” on social media
- The UK is the only country exempt from the new doubled tariffs that took effect Wednesday morning
- Wall Street posted its second consecutive day of gains after positive job openings data boosted economic optimism
- Friday’s jobs report will be a key test for markets as investors weigh trade tensions against economic strength
US stock markets opened higher on Wednesday morning as President Donald Trump implemented new tariffs on steel and aluminum imports. The tariffs doubled from 25% to 50% for all countries except the UK.
TRUMP PROTECTS AMERICAN STEEL 🇺🇸
"We are going to be imposing a 25% increase. We're going to bring it from 25% to 50%—the tariffs on steel into the United States of America—which will even further secure the steel industry in the United States." –President Donald J. Trump 🇺🇸 pic.twitter.com/ASaAjXxLDE
— The White House (@WhiteHouse) May 30, 2025
Dow Jones futures climbed 0.2% while S&P 500 and Nasdaq 100 futures both gained 0.2%. The increases came despite escalating trade tensions between the US and major trading partners.
Trump signed the tariff order on Tuesday evening, with the new rates taking effect Wednesday morning. The move targets China and the European Union as key trading partners face higher import costs.
The UK received an exemption from the tariff increases. All other countries will pay the doubled rates on steel and aluminum shipments to the United States.
Trade Deal Hopes Fade
Trump posted on Truth Social that Chinese President Xi Jinping is “extremely hard to make a deal with.” The comment dampened hopes for a lasting trade agreement between the world’s two largest economies.
You can’t make this up:
Markets are UP after this post from President Trump, calling China “extremely hard to make a deal with.”
Tariff threats appear to have lost all credibility for investors. pic.twitter.com/UJuEQMGMmy
— The Kobeissi Letter (@KobeissiLetter) June 4, 2025
The US and China had reached a temporary tariff reduction deal in Geneva last month. However, tensions have increased as both sides struggle to negotiate a longer-term agreement.
Trump claimed the US had its “best May in 30 years” in a separate social media post. The S&P 500 recorded its strongest May performance since 1990 last month.
Wall Street analysts said a phone call between Trump and Xi could provide the next market catalyst. However, experts warned that friendly communication may not lead to actual progress in trade talks.
Economic Data Supports Markets
Tuesday’s job openings data exceeded expectations and helped lift investor confidence. The Job Openings and Labor Turnover Survey showed a slight increase in hiring activity last month.
Stock markets posted their second consecutive day of gains following the positive employment report. Investors viewed the data as evidence the economy can handle trade policy pressures.
The 10-year Treasury yield held steady at 4.47% on Wednesday. The US Dollar Index declined 0.1% against a basket of major currencies.
Jobs Report Key Test
Friday’s nonfarm payrolls report will provide another measure of labor market strength. The monthly employment data serves as a key indicator for Federal Reserve policy decisions.
ADP employment data scheduled for Wednesday will offer an early preview of labor market conditions. Private sector job creation numbers often signal trends for the official government report.
Markets have rallied on hopes that strong economic fundamentals can offset trade war impacts. The S&P 500 approached bear market territory earlier this year before recovering on tariff relief expectations.
Bitcoin prices rose during premarket trading as investors sought alternative assets. Cryptocurrency markets often react to trade tensions and currency fluctuations.
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