Trump Delays EU Tariff, Markets Rally Worldwide \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Trump postponed a planned 50% tariff on EU goods, boosting investor confidence. European and U.S. markets responded with broad gains, reversing earlier losses. The tariff delay followed negotiations with EU leaders to reach a deal by July 9.
Quick Looks
- Tariff Update: Trump delays 50% tariff on EU goods to July 9
- Negotiations: Prompted by call with EU Commission President Ursula von der Leyen
- Market Response: European stocks close higher; U.S. futures surge
- Wall Street: S&P 500 futures +1.3%, Dow +1%, Nasdaq +1.4%
- Europe: Germany’s DAX +1.5%, France’s CAC 40 +1%
- Asia Mixed: Tokyo +1%, Seoul +2%, Hong Kong -1.4%, Shanghai -0.1%
- Apple Impact: Stock down 3% as Trump targets iPhone production abroad
- Retail Reaction: Walmart, Ross Stores, Deckers warn of tariff fallout
- Energy Sector: Oklo jumps 23% after Trump boosts nuclear licensing
- Currency & Oil: Dollar up, euro climbs slightly, Brent crude at $64.74
Deep Look
In a major development with global economic implications, President Donald Trump announced a delay in imposing a 50% tariff on imports from the European Union, defusing what had become a rapidly escalating trade standoff between Washington and Brussels. The tariffs, initially scheduled to take effect on June 1, have now been pushed back to July 9, following a direct call between Trump and European Commission President Ursula von der Leyen.
Trump framed the postponement as a good-faith gesture in light of renewed commitment to negotiations from the EU side. According to his post on Truth Social, von der Leyen expressed a desire to “get down to serious negotiations.” Trump described her tone as constructive, signaling a window of opportunity for a breakthrough in U.S.-EU trade talks.
The president’s sudden shift came as a surprise to investors, especially after a week of strong rhetoric in which he accused the EU of “stonewalling” and warned of immediate punitive measures. The reversal brought instant relief to financial markets, which had been skittish about the potential for retaliatory tariffs and further disruption to transatlantic trade.
Global stock indexes rallied in response. European benchmarks saw broad gains: Germany’s DAX surged 1.5% to 23,977.83, while France’s CAC 40 climbed 1% to 7,810.49. U.S. stock futures, which often serve as an indicator of investor sentiment, posted sharp gains: the S&P 500 future rose 1.3%, the Dow Jones Industrial Average added 1%, and the Nasdaq futures jumped 1.4%.
The reaction in Asian markets was more mixed, reflecting the complexity of regional supply chains and economic exposure to both U.S. and EU trade flows. Japan’s Nikkei 225 rose 1%, while South Korea’s Kospi gained 2%. However, China’s Shanghai Composite slipped 0.1% and Hong Kong’s Hang Seng fell 1.4%, under pressure from tech-sector selloffs and geopolitical uncertainty. Australia’s ASX 200 was flat, while Taiwan’s Taiex declined 0.5%. India’s Sensex gained 0.5%, bolstered by strong domestic earnings.
Trump’s tariff threats had sent waves of concern through both corporate boardrooms and investor circles in the prior week. On Friday, the U.S. stock market suffered its worst weekly performance in nearly two months as Wall Street tried to assess whether Trump’s threats were bluffs or actual policy decisions. The S&P 500 dropped 0.7%, the Dow lost 0.6%, and the Nasdaq slid 1% amid mounting fears of a tariff-fueled global slowdown.
One of the most affected companies was Apple Inc., whose stock fell 3% after Trump publicly pressured CEO Tim Cook to bring iPhone production back to the U.S. Trump warned that if Apple continues offshore manufacturing, it would face tariffs of “at least 25%.” He later clarified the measure would apply to all smartphone makers, including Samsung, to ensure fairness.
Apple wasn’t the only retailer under pressure. Walmart, which has previously warned that tariffs would raise prices for U.S. consumers, was once again targeted by Trump, who insisted the retail giant should “eat the tariffs” rather than pass costs onto consumers. Meanwhile, Deckers Outdoor, parent company of Hoka and Uggs, shed nearly 20% of its market value after announcing it would not issue financial guidance due to economic uncertainty stemming from trade volatility.
Ross Stores, another major U.S. retailer, dropped 9.8% after pulling its financial forecast for the year. The company cited supply chain concerns, noting that more than half of its products are sourced from China and would be directly impacted by additional tariffs.
Not all companies fared poorly. Intuit, parent of TurboTax and Credit Karma, saw its shares rise 8.1% after reporting quarterly earnings that beat expectations. The company’s solid performance helped buoy the tech sector, though broader uncertainty remained.
In contrast, the nuclear energy sector experienced a significant surge, following President Trump’s signing of new executive orders aimed at streamlining the approval process for nuclear energy projects. The orders are designed to reduce licensing delays and boost the U.S. nuclear industry’s competitiveness. Oklo Inc., which is developing next-generation compact nuclear reactors, saw its stock price jump 23%, signaling investor optimism around clean energy policies under Trump’s current administration.
Beyond corporate earnings, the tariff situation highlights broader concerns about the unpredictability of U.S. trade policy under Trump’s leadership, now in his second term. Critics argue that the president’s tendency to announce drastic policy shifts via social media creates uncertainty for markets and businesses. Supporters, however, contend that Trump’s aggressive tactics are necessary to secure better trade terms and revive domestic manufacturing.
Analysts say the July 9 deadline creates both a window and a warning. If talks between the U.S. and EU fail to yield results, the long-threatened 50% tariffs could still be enacted, triggering a likely retaliatory response from Brussels. That could impact a wide range of sectors, from automotive and pharmaceuticals to aerospace and agriculture.
Meanwhile, energy and currency markets remained relatively calm. Brent crude slipped by just 4 cents to $64.74 per barrel, signaling little concern about immediate disruption to global demand. The U.S. dollar strengthened against the yen, rising to 142.81 from 142.48, while the euro edged up slightly to $1.1388 from $1.1367.
As the July 9 deadline approaches, the world will be watching not only whether a deal is reached, but whether Trump maintains his current stance—or once again resets the tone with a single post. The markets, for now, are breathing a sigh of relief—but volatility remains just one tweet away.
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