Trump delays EU tariffs until July 9: European luxury and auto stocks rally

U.S. President Donald Trump has delayed the implementation of a proposed 50% tariff on European Union imports until July 9, following a request from European Commission President Ursula von der Leyen.

Reuters

The postponement, announced on Sunday, aims to provide additional time for negotiations between Washington and Brussels. Trump had previously threatened to impose the tariffs on June 1, citing stalled trade talks.

“We had a very nice call, and I agreed to move it,” Trump told reporters, referencing his conversation with von der Leyen. “She said we will rapidly get together and see if we can work something out.”

Von der Leyen confirmed the discussion, stating on X that Europe is “ready to advance talks swiftly and decisively.”

The delay alleviated immediate concerns in financial markets. European shares rebounded on Monday, with the Stoxx Europe 600 index climbing 1% after a previous decline. Luxury goods companies, including Kering, LVMH and Richemont, saw their shares rise between 1.5% and 2.4%, reflecting their significant exposure to the U.S. market. Automakers such as BMW and Porsche also experienced gains.

The proposed tariffs, if implemented, could increase consumer prices on a range of European products, including automobiles, olive oil and luxury handbags. The EU currently faces 25% U.S. import tariffs on steel, aluminum and cars, as well as “reciprocal” tariffs of 10% on most other goods. The new levy could rise to 50% in a no-deal scenario.

Trade talks have been challenging, with the U.S. seeking unilateral concessions from the EU, while Brussels advocates for a mutually beneficial agreement. The delay until July 9 provides a window for both parties to work toward a resolution.

FashionNetwork.com with Reuters