Europe Rallies as Trump Hits Pause on EU Tariffs

​European markets opened the week on solid footing after President Trump announced a delay in the rollout of 50% tariffs on European Union goods. Originally scheduled to begin June 1, the tariffs have now been pushed to July 9 following a weekend call between Trump and European Commission President Ursula von der Leyen.

The Stoxx 600 rose around 0.9%, with the DAX up 1.7% and the CAC 40 gaining 1.2%. Auto stocks led the rally, bouncing back from last week’s steep losses—BMW, Mercedes-Benz, and Volkswagen all posted gains over 1%.

The move comes after Trump’s Friday declaration that the EU was “very difficult to deal with” and that negotiations were “going nowhere.” The delay suggests diplomatic talks are back on the table, at least temporarily, with von der Leyen expressing optimism about advancing discussions “swiftly and decisively.”

Investors welcomed the de-escalation, especially in industries most vulnerable to tariffs like automobiles and machinery, which are major European exports to the U.S.

​Bottom line: Trump’s tariff delay gave European markets the breather they needed. Whether it lasts depends on how fast negotiations move—and whether the July deadline sticks. For now, Europe’s markets are exhaling.