Trump’s Tariff Delay Sends Ripple Effects Across Global Markets
Former U.S. President Donald Trump’s decision to delay the planned 50% tariff on European Union imports until July 9 has created noticeable waves across financial markets. The move, which was seen as a temporary cooling-off in trade tensions, triggered mixed reactions across different asset classes.
European stock markets were among the biggest winners. The Stoxx 600 index jumped by more than 1.2% after the announcement, with investors breathing a sigh of relief. The delay acted like a confidence boost, lifting sentiment that had been shaky due to growing tariff fears.
acted like a confidence boost, lifting sentiment that had been shaky due to growing tariff fears.
Gold, which had been rising on safe-haven demand, saw a slight pullback. Traders took profits as the immediate panic faded. However, the overall outlook for gold remains strong. Citi raised its short-term gold price target to $3,500, expecting that more investors could turn to gold if tensions return.
Oil prices also saw a modest rise after the news. With lower trade risk in the short term, prices edged higher. Still, gains were limited due to ongoing concerns about oversupply in the global market. The delay helped, but not enough to fuel a full rally.
The biggest impact, however, may be on global market sentiment. With the new deadline pushed to July 9, investors now have a few weeks of breathing room. But the uncertainty isn’t gone — markets remain cautious, watching every move from Washington and Brussels.
Impact: If trade talks improve before July 9, markets may stay calm. But if tariff threats return, gold could spike again, and stocks might lose momentum. Caution still hangs in the air.