Asian shares, US futures rise on EU tariff delay

Asian shares rose 0.3%.

US and European equity-index futures climbed along with Asian stocks on Monday as President Donald Trump extended a deadline on aggressive European tariffs with trade tensions whipsawing markets.

Contracts for the S&P 500 and the Nasdaq 100 advanced about 1% and those for the Euro Stoxx 50 jumped 1.4%. Trump earlier said he had agreed to delay the date for a 50% tariff on goods from the European Union to July 9 from June 1. A gauge of the dollar retreated 0.2% to its lowest level since December 2023.

Asian shares rose 0.3%.

Treasuries won’t be trading Monday due to the Memorial Day holiday in the US. Oil edged higher while gold slipped 0.4% on weak demand for haven assets.

Trump’s moves reflected the increasing uncertainty in markets, with his broadside against Europe on Friday a harsh reminder of the president’s volatile policy making. The tariff war has returned to the fore as the major driver of markets once again after concerns about Trump’s proposed tax cuts, and their impact on US deficit, churned markets much of last week.

“A clear pattern has emerged when it comes to Trump’s tariff strategy - hefty tariff threats soon followed by tariff pauses during which negotiations ensue,” said Tim Waterer, chief market analyst at KCM Trade in Sydney. “So investors are getting to know the Trump tariff playbook quite well, with his back-and-forth with the EU in this matter being the latest such example.”

Trump’s decision to extend the deadline came after a phone call with European Commission President Ursula von der Leyen.

Von der Leyen, who heads the EU’s executive arm, said earlier Sunday in a post on X that “Europe is ready to advance talks swiftly and decisively,” but “a good deal” will need “time until July 9.” That’s the date that Trump’s 90-day pause of his so-called reciprocal tariffs had originally been set to end.

Trump’s tariff threats on Friday also included a 25% levy on smartphones if companies including Apple Inc. and Samsung Electronics Co. failed to move production to the US. Shares of Samsung droped 0.2%.

“Let’s be clear: the risks are still that these are just pauses, we aren’t yet seeing any structural changes to tariffs,” said Josh Gilbert, market analyst at eToro in Sydney. “Pauses are all well and good for now, but during this time, we need to see more agreements in place to confirm Trump’s more negotiable approach.”

Investors are also gearing up for the Federal Reserve’s preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. The April reading is forecast to rise 0.1% based on consensus expectations.

Elsewhere, signs of port congestion in northern Europe and other hubs suggests trade wars could lead to maritime disruptions around the world, increasing shipping rates.

Meanwhile, Japan’s chief trade negotiator Ryosei Akazawa indicated his aim to resolve tariff talks in time for a June meeting between Trump and Japan’s Prime Minister Shigeru Ishiba following the president’s surprise pivot to allow a partnership between two of the countries’ steelmakers.

Trump on Friday announced a partnership between United States Steel Corp. and Japan’s Nippon Steel Corp., shocking markets with an agreement he said would keep the once-iconic American firm in the US, but otherwise providing no specifics. Nippon Steel shares jumped as much as 7.4% in Tokyo, while shares in US Steel rose 21% Friday.

In commodities, oil gained and gold fell in early trading Monday.