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Early Morning with Dave
Risk-Off Trades Back on the Front Burner
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Risk-Off Trades Back on the Front Burner

Trump’s steel and aluminum tariff hike puts risk assets back in the red…

David Rosenberg's avatar
David Rosenberg
Jun 02, 2025
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Early Morning with Dave
Early Morning with Dave
Risk-Off Trades Back on the Front Burner
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Highlights

• Trump’s steel and aluminum tariff hike puts risk assets back in the red…

• … and his IEEPA blanket tariffs may yet win on appeal

• Travel to U.S. continues to slump

• AI spending is boosting growth around the world

Key Takeaways

• Steel and Aluminum Tariffs Affect Big Slice of the Economy: We start the day with U.S. equity futures squarely in the red as the war of words continued between the U.S. and China on the trade front. Not to mention the 50% tariffs on steel and aluminum. There are 376,000 steelworkers in the United States and 8.3 million employed in the construction sector, not to mention the array of industries that rely on steel for inputs like energy, automotive, equipment manufacturing, electrical engineering, packaging, and consumer goods — all about to face a big margin squeeze from these 50% steel tariffs — doubled from an already punitive 25% (aluminum too!). There are another 5 million workers affected right there as well.

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