- U.S. President Donald Trump said Sunday he will delay 50% tariffs on the European Union until July 9.
- U.S. stocks dropped Friday on Trump’s tariff threats against the EU, but much less than they did on “Liberation Day.”
- Trump said Apple will have to pay a tariff of 25% or more for iPhones made outside the U.S.
- On Friday, Trump cleared the merger of U.S. Steel and Nippon Steel.
- Nvidia announces first-quarter earnings on Wednesday event, while the U.S. personal consumption expenditure index comes out Friday.
If U.S. President Donald Trump follows up on his threat of 50% tariffs on the European Union, he’d be imposing higher duties on America’s ally compared with the 30% on China currently.
But on Sunday, Trump said he would delay tariffs on EU to July 9 from June 1 following a call with European Commission President Ursula von der Leyen.
Indeed, when news of the tariffs first broke, analysts weren’t convinced Trump’s statement held much weight. For one, the U.S. President used the word “recommendation” — a proposal rather than a clear directive. Trump has also walked back on more than one occasion with regard to import duties: pausing the “reciprocal” tariffs and lowering trade barriers with China, albeit both on a temporary basis.
Major U.S. and European stock indexes did not have a sharp reaction compared with Trump’s initial announcement of tariffs on April 2, signaling that investors are beginning to take tariff-related announcements with a pinch of salt.
The proposal of 50% tariff on the EU is primarily a “negotiating tactic,” Barclays wrote in a Friday note.
Still, markets dropped on the week — the S&P 500, Dow Jones Industrial Index and Nasdaq Composite lost more than 2% during that period — as Treasury yields jumped.
The sell-off in Treasurys came on the back of Trump’s tax bill, which is estimated to add $2.3 trillion to the federal deficit.
So, while investors appear to be coming to terms with Trump’s tariffs proclamations, there’s much more in the president’s arsenal to keep markets jittery.
Source: https://www.cnbc.com/2025/05/26/cnbc-daily-open-investors-dont-feel-as-threatened-by-trump-tariffs-.html