US stocks slipped down afternoon but closed on a record higher for a second straight session on Tuesday, as news of proposed US tariffs on $4 billion worth of imported goods from the European Union lowered the optimism from the pause of U.S. and China trade war.

At the end of the trading day, the Dow Jones Industrial Average gained 0.26% to 26,715.91, the S&P 500 index increased 0.29% to 2,960 and the Nasdaq Composite Index edged 0.22% higher to 8,073.

The Trump administration threatened to impose tariffs on $ 4 billion of meat, cheese, wine and other EU goods, the proposed tariffs stem from a long-running dispute between European Airbus and rival Boeing in the United States, a matter that precedes protectionist policies of President Donald Trump for more than a decade.

In Europe, Airbus dropped by 0.27%, while Boeing declined by 0.61 in NYSE.

The US Trade Representative's office added tariffs to $21 billion in EU imports. The Trump administration's tariffs are pending the resolution of the Airbus-Boeing dispute, which is currently being heard by the World Trade Organization.

Trump tweeted earlier in April that "the EU has taken advantage of the U.S. on trade for many years and it will soon stop!"

Furthermore, gold climbed to $1,420.96 as some nervous investors shifted their money to the safe haven asset, which managed to cover the downside gap that occurred at the beginning of this week.

US markets will finish early tomorrow and close on Thursday due to the 4th of July Public Holiday.

Eyes will focus on private employment, factory orders and services data on Wednesday, while utmost attention will be on the government jobs report of June due on Friday.

The US dollar index, which measures the performance of the green currency against six major currencies, slipped to 96.30 after hitting a low of 96.13.