Global Markets React to US Tariff Delay on EU Goods

Global markets showed mixed performance on Tuesday, May 27, 2025, as U.S. futures jumped before Wall Street’s reopening after the Memorial Day holiday. Positive sentiment was driven by President Donald Trump's announcement delaying a planned 50% tariff on European Union goods to July 9. U.S. stock futures surged, with the S&P 500 rising 1.2% and the Dow Jones gaining 1.1%. European markets had modest movements: London's FTSE 100 climbed 0.8%, while Germany and France saw minimal changes. In Asia, Japan’s Nikkei 225 rose 0.5% amid expectations of upcoming interest rate hikes by the Bank of Japan due to inflation, notably from spiking rice prices. Other Asian markets were mixed, with gains in Hong Kong and Australia but losses in South Korea, Taiwan, and India. Oil prices held steady, and currency markets saw a stronger dollar and a slightly weaker euro. Market reaction to Trump’s tariff delay remained calm, as investors have grown accustomed to fluctuation in trade policy. Despite recent volatility from trade tensions, EU and U.S. officials expressed hope for a deal by the new July deadline. Last week, U.S. markets experienced their worst performance in seven weeks amid trade uncertainty.