The Dow Jones Industrial Average dipped Monday, the first trading day of June, as global trade tensions increased.

The 30-stock average lost 181 points, or 0.4%. The S&P 500 also pulled back 0.2%, while the Nasdaq Composite gained 0.2%.

China pushed back against U.S. accusations that it had violated a temporary trade agreement. Instead, the country blamed Washington for failing to uphold the deal — a sign that negotiations between the world’s two largest economies are deteriorating.

Tensions reignited following a brief pause after U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in Geneva and agreed to a 90-day suspension of most tariffs. National Economic Council director Kevin Hassett suggested on Sunday that President Donald Trump and China’s President Xi Jinping could have a conversation about trade as soon as this week.

“Conversations between Trump and Xi could prove critical to much needed clarity for the largest economies in the world,” said Jay Woods, chief global strategist at Freedom Capital Markets. “If they get clarity, look for another leg higher in this market and talk of new all-time highs. If this back-and-forth goes on, then expect volatile markets to continue.”

Tensions between the U.S. and European Union also heightened after Trump said he would double steel tariffs to 50%. The EU warned that this “undermines” negotiations, with a spokesperson adding: “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.”

Steel stocks rallied on the increased levies. Cleveland-Cliffs surged 24%, while Steel Dynamics and Nucor popped 13% and 14%, respectively.

On Friday, the S&P 500 closed out the month of May with a more than 6% gain, its best monthly performance since November 2023. The tech-heavy Nasdaq surged more than 9% for the month and the Dow rose about 4%.