European Stocks Surge as Trump Delays 50% EU Tariff Plan Until July 9

European stocks have surged after U.S. President Donald Trump announced a surprise postponement of a planned 50% tariff on European Union imports.

Originally set to take effect on June 1, the  tariffs have now been pushed back to July 9 following a phone call between Trump and European Commission President Ursula von der Leyen.

The development has given optimism into the  markets. Germany’s DAX rose 1.7%, France’s CAC 40 advanced 1.3%, and the Europe-wide Stoxx 600 climbed 0.7%. U.S. futures also moved higher in response, with S&P 500 futures gaining 1.3% and the Dow Jones up 1.1%.

Global Relief, But Uneasy Calm

While the announcement brings sentiment, analysts warn that the surge is temporary. The threat of steep tariffs still looms , and failure to strike a deal before July could  impact European exporters and manufacturing-heavy economies like Germany.

Goldman Sachs maintained its 0% eurozone growth outlook, cautioning that tariff implementation could trigger a 7–8% market selloff across Europe.

Despite this, the euro rose 0.2% against the dollar, touching a three-week high,  a sign of renewed, yet fragile, investor confidence.

Relief Rally, But Eyes on July

Investor appetite has picked up across financials, industrials, and autos,  sectors highly exposed to U.S.-EU trade flows. Shares of multinational exporters like Siemens, BMW, and Airbus posted notable gains.

April had already seen a similar 90-day pause after initial threats triggered a selloff. But with U.S. equity indices rebounding sharply,  the S&P 500 is up 20% since its April low,  some believe the Trump administration may now be more inclined to follow through on aggressive trade action.

A Window for Diplomacy

European Commission President von der Leyen welcomed the delay, stating that negotiations would begin immediately. “We have a narrow window to de-escalate tensions,” she said.

Trump echoed similar sentiments, noting that “progress” was being made but reiterated his intent to protect American industries if talks falter.

The U.S. has long accused the EU of benefiting from an unfair trade relationship. The threatened tariffs, which would affect €100 billion worth of goods, including autos, luxury items, and steel,  represent one of the most aggressive protectionist measures in recent years.

Cautious Optimism, Risk Ahead

With the new July 9 deadline now in place, attention turns to upcoming trade meetings and policy speeches on both sides of the Atlantic. Market participants remain hopeful for a resolution but wary of a return to volatility.

For now, the delay offers breathing room, for european stocks, investors, negotiators, and the global recovery alike. But unless tangible progress is made, the shadow of a full-blown trade war continues to loom.

 

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