President Donald Trump has postponed the planned 50% tariffs on European Union imports from June 1 to July 9. This decision came after a phone call with Ursula von der Leyen, President of the European Commission, who requested more time to negotiate a trade deal.
Trump confirmed the extension on his social media platform, Truth Social, saying talks will now begin “rapidly”.
Von der Leyen described the call as positive and said the EU needs until July 9 to finalize a “good deal.” She emphasized Europe’s readiness to move quickly and decisively in the negotiations.
The initial tariff threat was announced just days earlier on May 23 and would have imposed steep levies on EU goods unless they were manufactured in the U.S..
The markets reacted to the tariff delay with mixed signals. U.S. stock futures rose in early Asian trading, but the U.S. dollar weakened, suggesting the tariff news may not fully reverse recent market moves.
The euro gained strength, supported by technical indicators pointing to further upside potential. The EUR/USD pair broke above a minor resistance level at 1.1380, with targets set at 1.1420 and possibly 1.1500 if momentum continues.
Gold’s recent rebound, which showed promise after a bullish engulfing candle on Friday, stalled near $1,367 an ounce—a key resistance level. For gold to resume its upward trend, it must break above this level to reach $1,434 or even record highs.
If it fails, support levels near $1,315 and $1,280 could come into play. Momentum indicators remain positive but cautious amid ongoing uncertainty and limited market-moving events early this week.
This latest tariff delay reflects a pattern in which Trump uses tariff threats as leverage in trade negotiations but often backs down to allow more time for talks.
While this strategy has previously benefited U.S. stocks, Treasuries, and the dollar, traders now expect such reversals, reducing their impact on markets.
In summary, Trump’s decision to delay EU tariffs has eased immediate trade tensions, lifting the euro and pausing gold’s rally. However, the threat of tariffs remains, and markets remain sensitive to further developments in U.S.-EU trade relations.
