On Friday, the U.S. president threatened to bring the levies in on June 1, causing most major share indices to drop.
Markets rallied on Monday after U.S. President Donald Trump delayed 50 percent tariffs on European goods and reinstated the July 9 deadline for their implementation if no trade deal is reached between the United States and the European Union by then.
Major U.S. stock indices and European shares had fallen on Friday after Trump announced he was moving the deadline forward to June 1.
On Sunday, he reinstated the original deadline of July 9 to allow talks to continue, following a phone call with European Commission President Ursula von der Leyen.
“I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50 percent Tariff with respect to Trade and the European Union,” Trump wrote on social media platform Truth Social. “I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly.”
Germany’s DAX added 1.7 percent, and the CAC 40 in Paris was 1.3 percent higher. London’s markets were closed for a public holiday, as were markets in the United States.
Stock prices of European carmakers, luxury retailers, and wine and spirits firms all rose on Monday after the original deadline was reinstated.
The euro also reached its highest level against the dollar since April.
Trump’s statement followed a post from von der Leyen on social media platform X in which she described her conversation with the U.S. president as a “good call.”
“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,” she wrote.
“We had a very nice call, and I agreed to move it,” Trump said of the phone conversation before returning to Washington after spending the weekend in New Jersey. “She said we will rapidly get together and see if we can work something out.”
U.S. and EU trade representatives are scheduled to hold talks on Monday.
By Guy Birchall
