Dow jumps almost 350 points despite Trump saying he won’t back down on tariffs

  • The Dow rose nearly 350 points Monday as fears of a possible trade war continue.
  • President Trump doubled down on his proposed 25% and 10% taxes on imported steel and aluminium saying “we’re not backing down.”

The Dow Jones industrial average gained nearly 350 points Monday, to close up 1.42% at 24,887, despite President Donald Trump saying that “we’re not backing down” on his proposed tariffs on imported steel and aluminium.

The S&P 500 finished up 1.15% and the Nasdaq closed up 1.05%.

Trump, in an Oval Office meeting with Israeli Prime Minister Benjamin Netanyahu, said Monday that he wouldn’t back down on his proposals.

“No, we’re not backing down,” Trump said. “We had a very bad deal with Mexico – we had a very bad deal with NAFTA.”

The new taxes, which could come as soon as this week, and will charge an additional 25% on steel and 10% on aluminium, have created a rift within the Republican party. GOP Senator Ben Sasse said the move “will kill American jobs” and Trump’s own Fed pick, Jerome Powell, said the tariffs are “not the best approach.”

Shares of US Steel and Steel Dynamics sank slightly in trading Monday. The two had previously gained more than 4% when the news of the tariffs first hit on Thursday.

Boeing,Caterpillar, and General Electric on the other hand, all gained more than 2% Monday. All three industrials had been hit hard last week by the news.

Elsewhere, the 10-year yield rose two basis points to 2.88%, while West Texas crude oil gained 2% to $US62.69 a barrel.