U.S. President Donald Trump said Sunday he will delay 50% tariffs on the European Union until July 9. U.S. stocks dropped on Friday on Trump’s tariff threats against the EU, but the decline was less severe than previous reactions to similar announcements. Trump stated that Apple would have to pay a tariff of 25% or more for iPhones made outside the U.S. On the same day, Trump approved the merger of U.S. Steel and Nippon Steel.
Nvidia is set to announce its first-quarter earnings on Wednesday, while the U.S. personal consumption expenditure index is scheduled for release on Friday. These events could provide further insights into economic conditions and the potential impact of tariffs. If Trump follows through with his threat of 50% tariffs on the European Union, it would impose higher duties on America’s ally.
However, on Sunday, Trump announced he would delay the tariffs following a call with the European Commission President.
Trump postpones EU tariffs announcement
Initially, analysts were not convinced that Trump’s statement would hold much weight, noting that he used the word “recommendation” rather than issuing a clear directive.
Trump has previously walked back similar import duties on a temporary basis. Major U.S. and European stock indexes did not have a sharp reaction compared to earlier in April, signaling that investors are beginning to take tariff-related announcements with skepticism. Barclays described the proposed 50% tariff on the EU as primarily a “negotiating tactic.”
Despite this, the markets dropped over the week, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite losing more than 2%.
The sell-off in Treasurys came as Trump’s statements led to broader market jitters. Several tech firms have reported utilizing artificial intelligence to navigate the complexities of global supply chains amid Trump’s tariff policies. New AI tools have been developed to instantly process and respond to changes in the U.S. customs system, offering companies a way to adapt quickly to evolving tariff regulations.
Zack Kass, a futurist and former head of OpenAI’s go-to-market strategy, indicated that the uncertainty from U.S. tariff measures could present an opportunity for AI technology to demonstrate its value.
