(For a Reuters live blog on U.S., UK and European stock

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Indexes down: Dow 0.49%, S&P 500 0.27%, Nasdaq 0.05%

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Tesla falls after reporting lower May sales for some EU

nations

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U.S. ISM manufacturing PMI for May at 48.5 vs 49.3

forecast

(Updates after markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 2 (Reuters) -

Wall Street's main indexes dipped on Monday after President

Donald Trump said he plans to double tariffs on imported steel

and aluminum, fueling more uncertainty around U.S. trade

policies.

Trump

said late on Friday he planned to increase tariffs on

imported steel and aluminum to 50% from 25% starting Wednesday,

just hours after he accused China of violating an agreement.

Shares of U.S. steel companies rose, with Cleveland-Cliffs ( CLF )

jumping 28.3%, Nucor ( NUE ) up 11.5% and Steel Dynamics ( STLD )

11.3% higher.

However, shares of automakers fell. Ford and General

Motors ( GM ) both were down more than 4%.

"People have been thinking about that (steel tariffs) and

trying to formulate the economic impact. It presents the markets

with a lot of uncertainty right now," said Peter Andersen,

founder at Andersen Capital Management.

The increased levies risk deepening Trump's global trade

war, and dousing enthusiasm in markets stemming from the U.S.

president's softer trade stance that drove a recovery in risky

assets last month.

A temporary relief on some levies on China and a rollback of

steep tariff threats on the European Union, along with strong

earnings and improving economic picture helped the benchmark S&P

500 log its best monthly performance in 18 months in May.

Also fueling risk-off moves in global markets, Kyiv

struck some of Moscow's nuclear-capable bombers on Sunday,

renewing concerns around further escalation of the

war

.

At 10:31 a.m. ET, the Dow Jones Industrial Average

fell 208.46 points, or 0.49%, to 42,061.61, the S&P 500

lost 15.78 points, or 0.27%, to 5,895.91 and the Nasdaq

Composite lost 10.10 points, or 0.05%, to 19,103.67.

Eight of the 11 major S&P 500 sub-sectors fell, with

consumer discretionary stocks declining the most with

an about 1% fall. On the flip side, energy rose 0.8%

tracking a rise in oil prices.

U.S.-listed energy stocks advanced after producer group

OPEC+ kept output increases in July at the same level as the

previous two months.

Most megacap and growth stocks were down, with Tesla

leading losses with a 2.5% decline after it reported

lower monthly sales for Portugal, Denmark and Sweden.

On the economic front, the Institute for Supply Management's

(ISM) gauge of manufacturing activity came in at 48.5 for May,

below estimates of 49.3, according to economists polled by

Reuters.

Focus will be on comments from Federal Reserve Chair Jerome

Powell later in the day as he presents opening remarks before

the Federal Reserve Board International Finance Division's 75th

anniversary conference at 1:00 p.m. ET (1700 GMT).

Investors are also looking ahead to a crucial

nonfarm-payrolls report on Friday to gauge the U.S. labor

market's strength amid tariff volatility.

Declining issues outnumbered advancers by a 1.84-to-1 ratio

on the NYSE and by a 1.43-to-1 ratio on the Nasdaq.

The S&P 500 posted 10 new 52-week highs and four new

lows, while the Nasdaq Composite recorded 51 new highs and 63

new lows.