U.S. stock futures rose sharply on Monday after President Donald Trump announced he would delay a planned 50% tariff on European Union goods. The tariff, originally set to start on June 1, is now postponed until July 9 to allow more time for trade negotiations.
Trump made the decision following a phone call with Ursula von der Leyen, president of the European Commission. According to Trump, von der Leyen expressed a strong interest in serious negotiations and requested the extension. Trump said he was happy to grant the delay and expects talks to begin quickly.
Last week, Trump had warned that trade talks with the EU were failing and threatened to impose the steep tariffs starting June 1. This announcement unsettled markets and raised fears of escalating trade tensions.
On Monday, futures for the S&P 500 rose 1%, and Dow Jones futures gained 0.8%. In Asia, markets showed mixed results: Tokyo’s Nikkei rose 0.7%, and Seoul’s Kospi climbed 1.2%, while Hong Kong’s Hang Seng fell 1% and Shanghai’s Composite dropped 0.3%. Australia’s S&P/ASX 200 was nearly flat.
Last Friday, U.S. stocks fell amid uncertainty over Trump’s tariff threats. The S&P 500 closed down 0.7%, marking its worst week in seven. Apple shares dropped 3% after Trump said he pressured CEO Tim Cook to move iPhone production to the U.S. or face tariffs of at least 25% on imported phones.
Trump later clarified tariffs would apply to all smartphones made abroad, including Samsung’s products.
Other companies affected by trade worries included Deckers Outdoor and Ross Stores, both of which withdrew their financial forecasts due to economic uncertainty. Meanwhile, Intuit shares rose 8.1% after better-than-expected quarterly earnings.
Trump also signed executive orders to accelerate nuclear industry licensing, boosting stocks like Oklo, which jumped 23%
Oil prices edged up slightly on Monday, with U.S. crude at $61.62 per barrel and Brent crude at $64.27. The U.S. dollar weakened slightly against the yen and strengthened modestly against the euro.
This tariff delay offers a temporary easing of trade tensions between the U.S. and the EU, following months of back-and-forth tariff threats that have roiled global markets. The extension reflects both sides’ willingness to negotiate before imposing harsher trade barriers.
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