U.S. stock index futures rise; Trump delays 50% tariff on EU

U.S. stock index futures rise; Trump delays 50% tariff on EU

U.S. stock index futures rose on Friday, May 26, 2025, following news that U.S. President Donald Trump has agreed to delay the implementation of a 50% tariff on European goods until July 9. This delay comes after President Trump received a request from Ursula von der Leyen, President of the European Commission, for an extension to reach a "good deal" [1].

The initial deadline for the tariffs was set for June 1, but Trump agreed to postpone the implementation to July 9. This extension provides the EU with additional time to negotiate and potentially reach a mutually beneficial trade agreement. The delay is likely to provide a temporary respite for both the U.S. and EU economies, which have been under pressure due to the ongoing trade tensions.

The decision to delay the tariffs comes amidst ongoing negotiations between the U.S. and EU trade officials. Trump's latest announcement on Truth Social highlighted the challenges faced in these negotiations, citing "Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, and lawsuits against American companies" as key issues [2]. The EU, for its part, has been seeking to de-escalate tensions by removing industrial tariffs on both sides.

The markets reacted positively to the news of the delay, with stock index futures rising in anticipation of a potential resolution to the trade dispute. The delay also comes as a relief for the global oil market, which had seen prices drop significantly following Trump's initial recommendation of a 50% tariff on EU goods [3]. The delay provides some stability to the market, although ongoing geopolitical tensions and economic uncertainty may continue to impact global trade dynamics.

The U.S. stock index futures rise, coupled with the delay in tariffs, signals a temporary reprieve in the ongoing trade dispute between the U.S. and EU. Investors and financial professionals are closely monitoring the developments, hoping for a swift resolution to avoid further market volatility.

References:
[1] https://www.cnbc.com/2025/05/25/trump-50percent-tariffs-eu-july-9.html
[2] https://www.hindustantimes.com/world-news/us-news/trump-slams-50-tariff-on-eu-from-june-1-onwards-accuses-bloc-of-taking-advantage-of-us-101748001893257.html
[3] https://www.zawya.com/en/business/commodities/oil-slides-nearly-2-as-trump-recommends-50-eu-tariff-n40zpk9b