Markets remained largely on edge given the uncertainty over the Trump administration’s trade policies, with the president stating said over the weekend that he will hike tariffs on steel and aluminum imports to 50% from 25%. 

The prospect of higher tariffs has increased concerns of elevated inflation in the coming months. 

Trump’s tariff threat also came amid signs of strain between Washington and Beijing, as China denied that it had violated a trade agreement and vowed to safeguard its interests. 

The Trump administration is urging countries to provide their best offers for trade negotiations by Wednesday, according to Reuters.

With a self-imposed 90-day pause to Trump’s sweeping reciprocal tariffs on a host of nations due to expire in July, the White House is racing to secure a bevy of bespoke agreements. Several officials from the Trump administration have suggested that several agreements are close to being secured, although so far the only major deal announced has been with Britain.

Focus was also on the progress of a major tax cut and spending bill through Congress. Trump claimed that the bill is the “single biggest spending cut in history,” amid growing concerns that the bill will widen the fiscal deficit and also ramp up already stretched government debt levels.