Topline
U.S. stock futures and European markets rose sharply on Monday morning after President Donald Trump said he has agreed to delay the start date of his planned 50% tariffs on goods from the European Union to allow for more negotiations, marking the latest flip-flop on tariffs from the president.
File Photo: U.S. President Donald Trump said he spoke with European Commission President Ursula von … More
Key Facts
In premarket trading early on Monday, the benchmark S&P 500 Futures rose by 1.26% to 5,890 points, while Dow Futures were up 1.11% to 42,137 points.
The tech-heavy Nasdaq Futures climbed 1.4% to 21,270 points.
In the EU, the pan-European benchmark STOXX Europe 50 opened above 12,207 points, up more than 1% from Friday, while the broader STOXX Europe 600 also rose around 1%.
Other key European indexes also opened in the green, with Germany’s DAX and France’s CAC 40 rising 1.69% and 1.17% respectively.
What Did Trump Say About Eu Tariffs?
In a post on his Truth Social platform, Trump said he had received a call from European Commission President Ursula von der Leyen “requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union.” The president said he agreed to extend the deadline to July 9, and the EU Commission president told him that trade talks between the two sides will “begin rapidly.”
What Have Eu Officials Said About U.s. Trade Talks?
Shortly before Trump’s post, von der Leyen tweeted that she had made a “Good call” with the president and added, “The EU and US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”
What Do We Know About Trump’s Planned Eu Tariffs?
On Friday, Trump wrote on Truth Social that he will implement a “straight 50% Tariff” on all goods imported from the EU starting June 1 as he attacked the bloc, saying it was “formed for the primary purpose of taking advantage of the United States on TRADE.” Trump’s post accused the EU of being “very difficult to deal with” as he described the bloc’s value-added taxes, corporate penalties, and “unfair and unjustified lawsuits against Americans Companies,” as “trade barriers.” He also claimed that trade negotiations with the EU were “going nowhere.” The 50% tariff proposal marked a significant increase from the 20% tariff the Trump administration was planning to levy on the EU, as per the president’s so-called “reciprocal tariff” plan last month, before a 90-day pause went into effect.
Further Reading
Trump Extends Deadline for 50% Tariffs on EU Goods to July 9 (Bloomberg)
Trump Threatens 25% Tariff On Apple And 50% Levy On All EU Goods (Forbes)
Trump Threatens New Tariffs On EU And iPhones—Latest Big Tariff Flip-Flop Since ‘Liberation Day’ (Forbes)
