European markets rebounded Monday following US President Donald Trump’s unexpected decision to delay implementing 50% tariffs on European Union goods until July 9. The Stoxx Europe 600 index reversed Friday’s losses after Trump announced the postponement following what he described as a “very nice call” with European Commission President Ursula von der Leyen.
The temporary reprieve came as a surprise after Trump had claimed on Friday that negotiations were “going nowhere,” raising the threatened tariff rate from 10% to 50% and accelerating the implementation timeline to June 1. Following Sunday’s conversation, the European Commission reported that the two leaders had agreed “to fast-track the trade negotiations and to stay in close contact,” with Trade Commissioner Maroš Šefčovič later confirming “good calls” with his US counterparts.
Despite the positive market reaction, businesses continue to face significant uncertainty, with many having withdrawn financial forecasts in response to Trump’s unpredictable approach to trade policy. The president’s existing 25% tariffs on steel, aluminum, and cars remain in effect, while the EU has prepared retaliatory measures targeting $22.5 billion of US goods that will automatically trigger on July 14 without a deal. European officials are also consulting on a more extensive round of tariffs affecting $101 billion of US products, potentially including politically sensitive sectors like bourbon and automotive industries.