European and American stocks are poised for gains following Donald Trump’s decision to postpone the imposition of 50 percent tariffs on goods from the EU until July 9. This extension provides an additional 38 days for negotiating an agreement.

The postponement followed a phone call between Trump and European Commission President Ursula von der Leyen. European stock futures rose by up to 1.4 percent in response, recovering from Friday’s stock price declines. Similarly, US stock futures saw increases of around one percent.

In Asia, the Japanese Nikkei was up 0.74 percent, and the South Korean Kospi increased by 1.27 percent. The euro strengthened, while the US dollar weakened by 0.2 percent, reaching its lowest level since December 2023. The price of gold also fell by 0.2 percent amid hopes for a potential agreement.

Trump’s extension came just two days after he announced the 50 percent tariffs, initially set to take effect on June 1, citing unsatisfactory negotiations with Brussels.

The EU is the US’s third-largest trading partner, accounting for just over 20 percent of all goods imported into the US. Germany, Ireland, Italy, and France are the largest exporting countries. The tariffs would primarily affect the car industry, aviation, the pharmaceutical industry, and other product groups. The EU has prepared a retaliatory list targeting key areas in the US if the tariffs are implemented.