European stocks close higher as Trump delays EU tariffs

ISTANBUL 

European stock markets ended Monday with gains as US President Donald Trump extended the deadline for a planned 50% tariff on EU goods, delaying implementation until July 9.

The pan-European Stoxx 600 rose 0.99%, or 5.37 points to close at 550.5.

Germany’s DAX 40 index was up 1.68% to end at 24,027.65 points.

France’s CAC 40 rose 1.21% to close at 7,828.13, while Italy’s FTSE MIB 30 index gained 1.3% to 39,988.48 points.

In the UK, the markets were closed on Monday due to a holiday.

The auto industry saw significant gains Monday after the US tariff suspension gave a sigh of relief to the shares as vehicles and machinery are the EU’s largest exports to the US.

BMW, Mercedes-Benz and Volvo gained more than 2%, and Volkswagen climbed nearly 2.5%.

Citing what he described as unfair trade practices by the EU, Trump first declared in April that Washington would implement tariffs on June 1.

After speaking with European Commission President Ursula von der Leyen, the US president subsequently moved the date to July 9.

In a statement posted on the Truth Social platform on Sunday, Trump claimed that von der Leyen had asked for the extension and that she said “talks will begin rapidly.” He referred to the choice to allow the delay as “a privilege.”

Von der Leyen said on X that the EU and US share the world’s “most consequential and close” trade relationship.

“Europe is ready to advance talks swiftly and decisively,” she noted.

Although talks between the two parties are anticipated to remain difficult, the action allayed immediate fears in European markets.

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