HONG KONG (AP) — European shares closed higher and U.S. futures surged Monday after U.S. President Donald Trump said he would delay a threatened 50% tariff on goods from the European Union to July 9.
Trump announced the decision to push back the higher import duties after a call Sunday with Ursula von der Leyen, the president of the European Commission, who said she “wants to get down to serious negotiations,” according to the U.S. president’s retelling.
On Monday, the European Union’s chief trade negotiator said he had “good calls” with Trump administration officials and that the EU was “fully committed” to reaching a trade deal by the July 9 deadline.
Just last week, Trump had said on social media that trade talks with the European Union “were going nowhere” and that “straight 50%” tariffs could go into effect on June 1.
Markets welcomed the news.
The future for the S&P 500 gained 1.3%, while that for the Dow Jones Industrial Average advanced 1%. The future for the Nasdaq composite rose 1.4%.
Germany's DAX added 1.5% to 23,977.83 and the CAC 40 in Paris rose 1% to 7,810.49.
Markets were closed in Britain for a holiday.
In Asian trading, Tokyo's Nikkei 225 climbed 1% to 37,531.53, while the Kospi in Seoul picked up 2% to 2,644.40.
But most other regional markets declined.
Hong Kong's Hang Seng lost 1.4% to 23,282.33 and the Shanghai Composite Index fell 0.1% to 3,346.84.
Australia's S&P/ASX 200 was nearly unchanged at 8,361.00.
Taiwan's Taiex fell 0.5% and the Sensex in India gained 0.5%.
On Friday, U.S. stocks fell as traders weighed whether Trump’s latest threats were just negotiating tactics.
The S&P 500 lost 0.7% to end its worst week in the last seven. The Dow Jones Industrial Average dropped 0.6% and the Nasdaq composite sank 1%.
Apple dropped 3% and was the heaviest weight on the S&P 500 after Trump said he’s been pushing Apple CEO Tim Cook to move production of iPhones to the United States. He warned a tariff “of at least 25% must be paid by Apple to the U.S.” if it doesn’t.
Trump later clarified his post to say that all smartphones made abroad would be taxed and the tariffs could be coming as soon as the end of June.
“It would be also Samsung and anybody that makes that product,” Trump said. “Otherwise, it wouldn’t be fair.”
Trump has been criticizing companies individually when he’s frustrated with how they’re acting because of his tariffs and because of the uncertainty his trade war has created. He earlier told Walmart it should “eat the tariffs,” along with China, after the retailer said it would likely have to raise prices to cover the increased cost of imports.
