Equity futures moved higher after President Trump announced a delay in the implementation of a 50% tariff on the European Union, following a request from the E.U. Commission President. This chapter in the ongoing trade war has proven particularly complex and volatile.

On Friday, President Trump initially declared a 50% tariff on E.U. imports, set to take effect on June 1, citing frustration over stalled trade negotiations. The announcement followed the U.S. rejection of a proposed trade framework from the E.U., which included mutual tariff reductions, strategic investment agreements, and other broad initiatives aimed at easing tensions.

Markets reacted sharply to the news. Equities sold off, and volatility spiked—amplified further by a separate statement from President Trump threatening a 20% tariff on Apple (AAPL) products sold in the U.S. but manufactured abroad.

However, over the weekend, the White House announced a delay in the E.U. tariff rollout, pushing the start date from June 1st to July 9th. This pause appears to provide the E.U. with a narrow window to refocus efforts on high-priority sectors such as steel, automobiles, pharmaceuticals, and aircraft.

The tariff delay is not the only encouraging signal for global trade. Japanese Prime Minister Shigeru Ishiba is actively pursuing progress in U.S.-Japan tariff talks, with hopes of securing a major breakthrough at the upcoming G-7 summit.

While tensions remain elevated, the temporary suspension of E.U. tariffs and renewed diplomatic momentum suggest that markets may catch a short-term reprieve. With key developments expected from the E.U. and Japan in the coming weeks, investor attention will remain tightly focused on whether diplomacy can meaningfully reduce the risk of an escalating global trade war.

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