Trump Delays Tariffs on EU Goods, Easing Near-Term Trade Tensions

U.S. President Donald Trump has announced a delay in the implementation of the proposed 50% tariffs on European Union (EU) goods. Originally scheduled for June 1, the new implementation date has been pushed to July 9, allowing more time for trade negotiations between the U.S. and EU.

The decision followed a phone call between President Trump and European Commission President Ursula von der Leyen, during which von der Leyen requested additional time to finalize a deal. Trump agreed to honor the original 90-day negotiation window set in April and expressed optimism about reaching an agreement.

Market Reaction: Euro and Equities Rebound

The delay helped ease near-term trade tensions, boosting investor sentiment across global markets. The Euro Stoxx 50 Index futures rose nearly 1.40% at Monday’s open, while the Euro climbed past the 1.1400 level against the U.S. Dollar, reflecting improved market confidence following the announcement.

However, the situation remains fluid, with the potential for renewed tensions if negotiations do not yield a satisfactory agreement by the new deadline. For investors, this postponement offers a temporary reprieve, but vigilance is advised as the July 9 deadline approaches.

Underlying Risks: A Pause, Not a Resolution

While the delay offers a temporary de-escalation, it does not mark a resolution. The situation echoes the drawn-out U.S.-China trade conflict, where headline-driven optimism often gave way to disappointment.

“The tariffs may not end up being 50%, but a full compromise from either side is unlikely—this could complicate negotiations,” said Shawn, Senior Market Analyst at Ultima Markets.

With both sides likely to hold firm on key trade issues, investors should stay alert. Market volatility could persist, even if the tone remains cautiously optimistic in the short term.

What’s next for Euro?

The Euro is likely to remain supported amid cautious optimism surrounding the delay in U.S.-EU tariffs. This strength is also underpinned by a weakening U.S. Dollar, driven by rising fiscal uncertainty in the U.S. A softer dollar generally benefits the Euro, given its status as the world’s second-most traded currency.

EURUSD, 4-H Chart Analysis | Source: Ultima Markets MT5

From a technical perspective, the EUR/USD pair has maintained strength above the 1.1280 level and is currently trading near the key resistance at 1.1400. Holding above this support zone signals continued bullish momentum for the Euro.

Looking ahead, the combination of renewed optimism over U.S.-EU trade negotiations, ongoing U.S. fiscal concerns, and the Euro’s relative strength may continue to support upside potential—especially if the U.S. Dollar remains under pressure.

Euro Stocks: Optimism Lifts Market, But Caution Remains

European equities also responded positively, with the Euro Stoxx 50 Index (EU50) rebounding and recovering losses from last Friday. However, the broader outlook remains tethered to global risk sentiment and trade developments.

EU50, Day Chart Analysis | Source: Ultima Market MT5

From a technical standpoint, the EU50 Index has rebounded from key support at 5300, keeping it in bullish territory. However, it now faces major resistance near its historical high, which could limit further upside unless a stronger catalyst emerges.

“Global markets have rallied on optimism following the tariff delay, but the underlying risks remain,” said Shawn, Ultima Senior Market Analyst.

“There’s still no concrete resolution between the U.S. and other major trade partners. Whether the current environment can sustain a continued bull run remains uncertain.” He added.

While short-term momentum favors the bulls, the path higher will require more than temporary relief—possibly a formal breakthrough in trade talks or stronger macroeconomic indicators.

Disclaimer

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.