European Stocks Edge Higher After Trump Delays 50% Tariffs on EU

On Monday, the European markets had a better performance following a last-minute decision by US President Donald Trump to postpone sweeping tariffs on European Union imports. 

The move had threatened to escalate trade tensions between the US and the EU.

Major indices across Europe showed slight gains in early trading. For example, the Stoxx 600 was up 0.3%.

Frankfurt’s DAX and Paris’s CAC 40 each edged up around 0.4%, while London’s FTSE 100 remained flat.

The tariffs, originally scheduled to take effect this week, targeted EU automobiles, agricultural products, and luxury goods.

However, the former president announced the delay late Sunday, citing “positive signals” from ongoing backchannel negotiations with European officials.

The 50% tariff plan was first proposed in April, drawing immediate criticism from both EU leaders and American business groups, many of whom warned it could trigger a retaliatory response and disrupt supply chains. 

In response, EU officials prepared a counter-tariff package targeting US tech products, whiskey, and farm goods.

Therefore, the postponement offers temporary relief.

Investors welcomed the delay as a sign that diplomatic channels remain open.