Global Markets Rally as Trump Postpones EU Tariffs

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U.S. futures leapt higher Monday night after President Donald Trump announced a delay to his planned 50 percent tariffs on European Union imports, sparking relief across global markets even as analysts caution against unbridled optimism. In Europe, the STOXX 600 index rose nearly one percent, led by a 1.7 percent rebound in auto stocks that had tumbled in anticipation of levies against German and other carmakers. Yet economists warn that any future deal reducing duties to 20 or 30 percent would almost certainly trigger EU countermeasures, underscoring lingering trade tensions between the world’s largest economies.

The tariff announcement has prompted strategic responses beyond financial markets. During French President Emmanuel Macron’s state visit to Vietnam—the country’s first in nearly a decade—Paris and Hanoi inked a landmark agreement for Vietnam to purchase twenty Airbus A330neo wide-body jets. The deal, signed alongside commitments on vaccines from France’s Sanofi and cooperation on nuclear energy, positions Airbus to offset potential losses in the U.S. market and strengthens Europe’s foothold in fast-growing Southeast Asia, even as U.S. trade policy rattles transatlantic ties.

In Sweden, automaker Volvo Cars revealed plans to cut approximately 3,000 office-based jobs—chiefly at its Gothenburg headquarters—as part of an 18 billion kronor cost-reduction initiative aimed at protecting profitability amid tariff-driven pressures. Volvo, owned by China’s Geely Holding, has already withdrawn one China-made model from U.S. showrooms over levies on Chinese imports and suspended financial guidance for 2025 and 2026. Its latest layoffs reflect broader industry concerns that Trump’s trade rhetoric and potential tariffs continue to unsettle supply chains and margins worldwide, even after the administration’s temporary delay on European duties.

Against this backdrop of volatility, U.S. investors remain divided between relief and caution. After Wall Street’s Memorial Day holiday, traders watched as futures on the S&P 500 and Nasdaq climbed and European bond yields eased. Yet Holger Schmieding, chief economist at Berenberg, emphasized that a partial tariff rollback would still leave the threat of new import duties and retaliatory measures, warning that “the path remains rocky” for global trade and market stability.

Meanwhile, across Omaha, Warren Buffett’s annual shareholders meeting offered its own brand of market insight. CNBC Pro’s Yun Li highlighted lesser-known nuggets from the Oracle of Omaha, including his enduring bullishness on select U.S. real estate markets and growing stakes in Japanese trading houses—signals that value investing and global diversification remain at the heart of Berkshire Hathaway’s strategy despite trade headwinds.

As investors parse these varied developments, the interplay of high-stakes diplomacy, corporate cost-cutting and timeless Buffett wisdom underscores a single truth: trade policy moves by Washington reverberate far beyond tariff lines, shaping deals in Asia, prompting layoffs in Europe and recalibrating portfolios in the United States. With Trump’s EU tariff delay offering only a temporary reprieve, businesses and markets alike are bracing for the next chapter in an era defined by economic unpredictability.

Related News : https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, cnbc.com

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