European semiconductor company shares rise 2.5% to 5% as President Trump postpones tariffs on EU imports.

European semiconductor company shares rise 2.5% to 5% as President Trump postpones tariffs on EU imports.

European semiconductor company shares rose between 2.5% and 5% on Friday, May 25, 2025, following U.S. President Donald Trump's announcement that he would delay the imposition of 50% tariffs on European Union imports until July 9. This reprieve comes after Trump initially threatened to impose the tariffs starting June 1, citing ongoing trade discussions with the EU [1].

The delay in tariffs, which was agreed upon following a call with European Commission President Ursula von der Leyen, has had a positive impact on European markets. Key European semiconductor companies, such as those listed on the DAX and CAC indices, experienced significant gains, reflecting investor optimism about the potential resolution of trade tensions [2].

The U.S. markets also reacted to the news, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite dropping slightly on Friday, though the declines were less severe than the initial reactions to Trump's tariff threats. The mixed market sentiment underscores the ongoing uncertainty surrounding U.S. trade policy, with analysts noting that the president's erratic approach to tariffs continues to influence investor behavior [3].

The delay in tariffs provides European companies with additional time to adjust their strategies and potentially mitigate the impact of higher import duties. Furthermore, the reprieve has been seen as a temporary respite in an ongoing trade war that has already led to significant market volatility.

Investors should closely monitor the upcoming earnings reports from major European semiconductor companies, as well as any further developments in U.S.-EU trade negotiations, to gauge the potential long-term impact on these companies' performance.

References:

[1] https://www.cnbc.com/2025/05/26/cnbc-daily-open-trumps-eu-tariffs-didnt-seem-to-faze-investors-much.html

[2] https://www.financialexpress.com/world-news/trump-delays-50-eu-tariff-to-july-9-after-call-with-european-commission-presidentnbsp/3857232/

[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3RX060:0-asian-stocks-euro-gain-after-trump-delays-eu-tariffs/