Trump Tariff Delay: US Stock Futures Rise
- US equity index futures saw gains early Monday in Asian trading following President Donald Trump's decision to extend a deadline on imposing aggressive European tariffs.
- Contracts tied to the S&P 500 and Nasdaq 100 indices both experienced increases after Trump announced he would postpone a planned 50% tariff on goods from the European...
- These market reactions underscore the prevailing uncertainty, amplified by Trump's recent threats against europe.
US stock futures surge following President Trump’s delay of European tariffs, offering a reprieve to markets shaken by escalating trade uncertainties. This decision, pushing back a planned 50% tariff on EU goods, immediately boosted the S&P 500 and Nasdaq 100 indices. However, the underlying market volatility persists: Trump’s ongoing tariff threats, including a potential 25% levy on smartphones, signal a protracted trade war. Investors are now keenly awaiting the Federal Reserve’s inflation measure,the US personal consumption expenditures (PCE) price index,for further insights. News Directory 3 keeps you informed on how these developments shape global markets. Discover what’s next for trade relations and economic indicators.
Trump Tariff Delay boosts US Stock Futures Amid Trade Jitters
Updated May 26, 2025
US equity index futures saw gains early Monday in Asian trading following President Donald Trump’s decision to extend a deadline on imposing aggressive European tariffs. The move offered some relief to markets previously rattled by trade tensions and uncertainty.
Contracts tied to the S&P 500 and Nasdaq 100 indices both experienced increases after Trump announced he would postpone a planned 50% tariff on goods from the European Union until July 9, pushing it back from the original June 1 date. the dollar’s value fluctuated after the declaration, having previously dipped to its lowest level as December 2023 on Friday. The yen and Swiss franc, which had benefited from the flight to safety on Friday, saw slight pullbacks in early Asian trading.
These market reactions underscore the prevailing uncertainty, amplified by Trump’s recent threats against europe. These threats included a potential 25% tariff on smartphones if companies like Apple and Samsung failed to relocate production to the United States. The tariff threats highlight the ongoing trade war and its potential impact on global markets.
Rodrigo Catril, a strategist at National Australia Bank in Sydney, noted the mixed sentiment. “Overall it’s good news on the day,” catril said, “But the constant threats don’t make for a good environment for investment and hiring decisions.”
Prior to Trump’s tariff extension, futures for Asian stocks had declined, mirroring Wall Street’s performance on Friday. Contracts for Japanese, Australian, and Hong Kong stocks all showed losses. In the commodities market, oil prices rose by 0.7%, while gold prices fell by 0.3% in early Monday trading.
Capital Economics analysts suggest that Trump’s threat of a 50% tariff on the EU might be a “negotiating tactic” and that the final tariff levels are “very unlikely” to settle at that high rate.
“At this stage, we are not inclined to change our working assumption that tariffs on the EU will ultimately settle around 10%, but this underlines that there are risks and that the road to an agreement could be rocky,” the firm stated.
Treasuries remained relatively stable on Friday, even after yields had surged earlier in the week, signaling growing investor anxiety regarding the fiscal implications of Trump’s tax break legislation. US treasury markets were closed Monday for a public holiday.
Investors are also anticipating the release of the Federal Reserve’s preferred inflation gauge, the US personal consumption expenditures (PCE) price index excluding food and energy, scheduled for Friday. Consensus forecasts anticipate a 0.1% increase for the April reading.
Reports of port congestion in northern Europe and other key hubs suggest that trade disputes could lead to disruptions in maritime shipping, possibly driving up shipping rates.
meanwhile,Japan’s chief trade negotiator,Ryosei Akazawa,expressed his intention to resolve tariff discussions in time for a June meeting between President Trump and Japan’s Prime Minister Shigeru Ishiba. This follows Trump’s recent decision to allow a partnership between United States Steel corp. and Japan’s Nippon Steel Corp.
Trump’s endorsement of the partnership between United States Steel Corp. and Nippon Steel Corp. surprised markets. He stated the agreement would keep the iconic American firm in the US, though he provided few details. Shares in US Steel subsequently jumped by 21.2%.
What’s next
Market participants will closely monitor upcoming economic data and trade negotiations to gauge the potential impact on global economic growth and monetary policy. The Federal Reserve’s next moves regarding interest rates will also be a key focus.