Markets Rally as Trump Delays EU Tariffs, Easing Global Trade Tensions – Asia Market Wrap

US and European equity-index futures climbed as President Donald Trump extended a deadline on aggressive European tariffs, boosting optimism after whipsawing on Friday.

Contracts for the S&P 500 and the Nasdaq 100 advanced 1% and those for the Euro Stoxx 50 jumped 1.6%. Trump earlier said he had agreed to delay the date for a 50% tariff on goods from the European Union to July 9 from June 1. Asian shares edged up 0.2%, paring some of their gains at the start. A gauge of the dollar weakened 0.2% to its lowest level since December 2023.

Oil was slightly higher. US Treasury futures declined and gold slipped 0.3% on weak demand for haven assets. Treasuries won’t be trading during Asian hours Monday due to the Memorial Day holiday in the US.
Trump’s moves reflected the increasing uncertainty in markets, with his broadside against Europe on Friday a harsh reminder of the president’s volatile policy making. The tariff war has returned to the fore as the major driver of markets once again after concerns about Trump’s proposed tax cuts, and their impact on the US deficit, churned markets much of last week.

Trump’s decision to extend the deadline came after a phone call with European Commission President Ursula von der Leyen. Von der Leyen, who heads the EU’s executive arm, said earlier Sunday in a post on X that “Europe is ready to advance talks swiftly and decisively,” but “a good deal” will need “time until July 9.” That’s the date that Trump’s 90-day pause of his so-called reciprocal tariffs had originally been set to end. Trump’s tariff threats on Friday also included a 25% levy on smartphones if companies including Apple and Samsung failed to move production to the US. Shares of Samsung dropped 0.2%.