The Nikkei 225 Index dropped 1.3% to below 37,500 while the broader Topix Index lost 0.9% to 2,777 on Monday, declining for the second consecutive session as renewed tariff threats from US President Donald Trump rattled markets. Market jitters were triggered by Trump’s announcement of plans to double tariffs on steel imports to 50%, effective June 4. The news weighed heavily on Japanese steelmakers, with JFE Holdings and Kobe Steel dropping 1.8% and 1.0%, respectively. Nippon Steel slipped 0.5%, cushioned somewhat by Trump’s praise of its proposed merger with US Steel. Losses extended across several major sectors. Notable decliners included Disco (-2.2%), Mitsubishi UFJ Financial Group (-2.1%), Sanrio (-1.7%), Tokyo Electron (-1.5%), and Advantest (-3.3%). Investors remained cautious amid growing trade tensions and uncertainty surrounding the future of US-Japan economic relations.