Tariff tensions are back.
Monday was a good reminder that just because something hasn’t been in the headlines for a while doesn’t mean it’s gone away.
The Dow dropped 115 points, or about 0.3%, kicking off June on a sour note.
Meanwhile, the S&P 500 inched up 0.11% and the Nasdaq managed to squeeze out a 0.56% gain.
Not exactly panic, but definitely not confidence, either.
Here’s how to play it.
Tariffs, Then and Now
Let’s rewind for a second.
Not long ago, Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng sat down in Geneva and agreed to a 90-day tariff truce.
That was supposed to cool things down and give both sides room to breathe.
But the temperature’s rising fast.
And with President Donald Trump and China’s Xi Jinping scheduled to speak soon, traders are holding their breath.
If those talks bring clarity, we could see another run higher.
But if the back-and-forth continues, get ready for a market that’s all over the place.
And it’s not just China.
The U.S. is now threatening to double steel tariffs on the European Union to 50%.
That caught Brussels off guard, and they fired back, saying this “undermines” ongoing negotiations and adds cost for consumers and businesses.
Translation: There’s now another layer of global tension added to an already shaky foundation.
What Does This Mean for Traders?
If you’re trading options, this kind of environment is a double-edged sword.
On the one hand, volatility creates opportunity.
Big swings mean big premiums, and smart trades can pay fast.
But sloppy positioning or emotional reactions can burn your account just as quickly.
This is not the time to be guessing.
You want to be laser-focused on catalysts — and tariff news is now a clear one.
Every time a mic is in front of Trump or Xi, or someone leaks a “scoop” about negotiations, markets could swing.
That means you should keep your position sizes in check.
Don’t go max risk on anything right now.
Hedge where you can and watch the indexes closely.
If Trump and Xi strike a deal, or even hint that they might, momentum traders will push the Dow and S&P higher, hard and fast.
But if things break down, the opposite can happen.
Out of Sight …
Markets had been running like tariff wars were old news.
But Monday proved otherwise.
Trade tensions are alive and well, and traders who treat this like noise instead of a signal are going to get left behind.
If you’re an active trader, now’s the time to tighten up.
And if you’re not trading on this stuff?
Why not?
Volatility is the oxygen of the options market.
Just make sure you’re breathing it in smart, because this market isn’t going to let up anytime soon.
Stay sharp,
— Jeff Zananiri
Sick of chasing junk setups and watching your account shrink?
Most traders are stuck on repeat — same mistakes, same results, same frustration.
APEX is how you break that cycle.
Join Aaron Hunziker at 10 a.m. ET and see the exact strategies that have worked for him through good markets, bad markets, and everything in between.
👉 [Reserve your spot] before it fills up.
*Past performance does not indicate future results.
