Trump Promises Delay on New Tariffs and Stock Market Reacts

Tariffs for the European Union have been delayed for about a month and a half as the United States and European Union negotiate.

Timothy St. John•Tuesday, May 27, 2025•2 min read

Donald Trump has held off on new tariffs for the European Union for now.

Quick overview

President Trump announced a delay on the new 50% tariff on European Union goods until July 9th.
Despite the tariff delay, the stock market remains down 2% for the week, with the S&P 500 and Nasdaq both experiencing declines.
Negotiations between the U.S. and the European Union are ongoing, with hopes for a mutually agreeable solution.
European Commission President Ursula von der Leyen expressed readiness to advance talks swiftly, which could positively impact U.S. investors.

On Monday, President Donald Trump said he would be holding off on the new 50% tariff on European Union goods, but the stock market still remained down 2% for the week.

The European Union negotiates with the U.S over tariffs.

Even though President Trump just announced that he would be imposing new tariffs on the European Union, he has now said he would be delaying them until July 9th. When he declared the new tariffs would be coming, the stock market dipped in response. The delay has not provoked a positive upswing yet, but that could still come later on Tuesday as the markets open.

At the time of writing, the S&P 500 is down 0.67% from the previous trading session, which would have been between Thursday and Friday, since Monday was Memorial Day and the markets were closed. The Nasdaq Composite dipped 1.00% or 188 points in the same period. The Dow Jones dropped as well, losing 256 points, or 0.61%.

A Deal in Progress

For now, the new tariffs have been put off, but they could still come into effect in early July. On Sunday, Trump had a phone conversation with Ursula von der Leyen, the president of the European Commission. Afterwards, Trump announced to the press that the negotiations had started between the two close trade partners, and he seemed confident that something agreeable could be worked out.

That means that those newly discussed 50% tariffs on European Union goods may never have to go into effect. If the two partners can work out a solution to their trade dispute, then the U.S. stock market will benefit. As soon as news of that nature drops, the stock market should dramatically improve.

Investors should be aware that the markets are still relatively high. Despite a hit late last week, the markets are up to about the same level they started the year, showing vast improvement from their rough March-April numbers.

Van der Leyen says that the European Union is ready to reach a good deal and to advance talks “swiftly and decisively.” That is good news for U.S. investors who want to put the tariff problem behind them.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.