Global markets gained on Monday after President Donald Trump extended a deadline for tariffs on European goods. The Trump tariff delay boosted investor sentiment amid ongoing trade tensions.
Futures for the S&P 500 and Nasdaq 100 rose 1%, while Euro Stoxx 50 contracts jumped 1.4%. Asian shares added 0.3%. The US dollar index fell 0.2%, hitting its lowest level since December 2023. Oil edged higher. Gold slipped 0.4% as demand for haven assets weakened.
The tariff delay moves the 50% levy deadline from June 1 to July 9. Trump announced the decision after a call with European Commission President Ursula von der Leyen.
Von der Leyen posted on X, saying Europe is ready to “advance talks swiftly and decisively,” though a good deal will “take time until July 9.”
Market watchers see a familiar pattern in Trump’s tactics.
“A clear pattern has emerged — hefty threats followed by pauses,” said Tim Waterer, Chief Market Analyst at KCM Trade. “The EU back-and-forth is another example.”
Last Friday, Trump also threatened 25% tariffs on smartphones. He warned companies like Apple and Samsung to move production to the US. Samsung shares dropped 0.2%. Apple’s response remains unknown, as US markets were closed for Memorial Day.
“These are just pauses. Structural change hasn’t happened yet,” said Josh Gilbert, Analyst at eToro. “We need firm deals to confirm Trump’s negotiable approach.”
Meanwhile, port congestion in northern Europe is raising fears of shipping delays. A prolonged trade war could push up global shipping rates.
Markets are also awaiting the Federal Reserve’s PCE inflation data, due Friday. The core index is expected to rise 0.1% in April, based on forecasts.
In Asia, trade developments continue. Japan’s top negotiator, Ryosei Akazawa, said he hopes to resolve tariff disputes before Trump’s June meeting with Japanese PM Shigeru Ishiba.
Trump also surprised markets Friday by announcing a partnership between US Steel and Japan’s Nippon Steel. He claimed the deal would preserve American jobs but gave few details. Still, Nippon Steel shares rose 7.4%, while US Steel surged 21% on Friday.
As global investors respond to Trump’s evolving trade policy, markets show cautious optimism — but risks remain.
