U.S. markets closed lower Monday, with major indexes seeing their biggest one-day drop in weeks and the Dow bearishly closing below a closely watched level for the first time in two years as fresh threats from President Donald Trump against U.S. trading partners underlined how the risk of protectionist policies has not left the market. The Dow Jones Industrial Average tumbled 328.09 points, or 1.3%, to 24,252.80 with the S&P 500 falling 37.81 points, or 1.4%, to 2,717.07.

European markets also closed lower as the risk-off sentiment continued to preside over the global equity markets. The Stoxx Europe 600 Index shed 2% to end at 377.17 with Germany’s DAX 30 falling 2.5% to finish at 12,270.33 and the U.K.’s FTSE losing 2.2% to end at 7,509.84. Losses in oil giants and the automotive sector weighed the most on indexes as Investors remained concerned that trade tensions between the U.S. and major trading partners such as China and the European Union could develop into a big drag on the global economy.

Harley hit by tariffs

U.S. President Donald Trump on Monday slammed Harley-Davidson Inc after the motorcycle maker said it would move production for European customers overseas to avoid retaliatory tariffs that could cost it up to $100 million per year. In a regulatory filing, the 115-year-old Milwaukee, Wisconsin-based company said the retaliatory duties would result in an incremental cost of about $2,200 per average motorcycle exported from the United States to the European Union, but did not provide more details on current motorcycle costs.

Harley-Davidson, the dominant player in the heavyweight U.S. motorcycle market said earlier on Monday it would not pass on any retail or wholesale price increases in the EU and instead focus on shifting some U.S. production. Trump said he has fought hard for the company and was surprised by its plans, which he described as waving the “White Flag.” Harley shares closed down nearly 6 percent and analysts cut their profit forecasts on concerns about how quickly the company would be able to adapt to the 25 percent import duties the European Union began charging on June 22.

Dow Jones component change

Dow Jones Industrial Average is poised to tweak a crucial component of the blue-chip gauge — the figure used to determine the influence of any of the current 30 components that make up the index – the divisor. The change comes with the removal of the last remaining stock among the Dow’s original 12 components after the close of trading Monday. Shares of the industrial conglomerate General Electric Co. will be replaced with shares of Walgreens Boots Alliance Inc.

Dow is determined by calculating the sum of the prices of its components using a divisor that factors in company splits of their shares. Stock splits can swing the balance of influence for any one blue-chip component. The current divisor is 0.145233969 meaning that a $1 price move in any Dow component translates to a price swing of 6.8854. The divisor will be updated before the start of trade on Tuesday.