President’s tariff postponement sparks global market reaction, but uncertainty looms
HONG KONG — European markets opened higher Monday and U.S. futures jumped after President Donald Trump announced he would delay a planned 50% tariff on European Union goods, offering investors a temporary sigh of relief amid mounting global trade tensions.
The tariff hike, originally set to take effect June 1, has been postponed until July 9 following a phone conversation between Trump and European Commission President Ursula von der Leyen. Trump said von der Leyen signaled she was ready to enter “serious negotiations” on a trade agreement.
Germany’s DAX soared 1.7% to 24,020.48 and France’s CAC 40 climbed 1.3% to 7,830.99. U.S. stock futures followed suit—the S&P 500 gained 1.3% and the Dow Jones Industrial Average added 1.1%. The London Stock Exchange was closed for a holiday.
The positive momentum wasn’t universal. In Asia, markets were mixed: Tokyo’s Nikkei 225 rose 1%, while South Korea’s Kospi jumped 2%. However, Hong Kong’s Hang Seng Index tumbled 1.4% and China’s Shanghai Composite dipped 0.1%.
The delayed tariff announcement comes after a volatile week on Wall Street, where fears of an escalating trade war drove down major indices. On Friday, the S&P 500 fell 0.7%, its worst week in nearly two months. Apple dropped 3% after Trump warned the tech giant it could face tariffs of “at least 25%” unless it moves iPhone production to the U.S.—a threat he later broadened to all smartphone manufacturers, including Samsung.
Trump’s unpredictable trade moves have left major corporations like Walmart, Ross Stores, and Deckers Outdoor reeling. Deckers stock plunged 19.9% despite beating earnings expectations, as the company withheld financial forecasts citing economic uncertainty.
Meanwhile, stocks in the nuclear energy sector rallied. Fast-fission startup Oklo soared 23% after Trump signed executive orders designed to accelerate nuclear power development.
Oil prices also ticked upward: U.S. crude rose to $61.96 per barrel, and Brent crude climbed to $64.61. The dollar strengthened slightly against the yen and euro, reflecting cautious optimism.
Despite the relief rally, market analysts warn the reprieve may be short-lived if concrete trade agreements aren’t reached soon.
“Investors are responding to the pause, but the threat is far from over,” said one analyst. “All eyes are now on what happens before July 9.”