European Stocks Rise as Trump Delays 50% EU Tariffs

European stocks rallied after U.S. President Donald Trump postponed the imposition of 50% tariffs on European Union goods from June 1 to July 9, following discussions with European Commission President Ursula von der Leyen. The delay alleviated fears of escalating trade tensions and potential retaliatory tariffs from the EU, prompting gains across major indices such as the Stoxx 600, Germany's DAX, and France's CAC 40. Key sectors exposed to U.S. consumers, including automotive companies like Stellantis, Volkswagen, BMW, and Mercedes Benz, saw significant rebounds. The postponement was welcomed by investors as a sign that diplomatic negotiations remain active, reducing uncertainty in global markets. Despite prior concerns about the impact of tariffs on global supply chains and economic growth, this move offered a temporary reprieve and optimism for a negotiated trade agreement by the July deadline. The decision also helped stabilize U.S. and Asian markets, which had been volatile amid tariff threat concerns.