European stocks opened higher on Monday after U.S. President Donald Trump announced a delay in imposing a 50% tariff on European Union goods, easing investor concerns and lifting sentiment across the region.
The pan-European Stoxx 600 rose around 1% shortly after the opening bell, with all major sectors trading in positive territory. France’s CAC 40 gained 1.3%, while Germany’s DAX surged 1.8%. U.K. markets remained closed for a public holiday.
Auto stocks, which had fallen 3% in the previous session amid tariff fears, rebounded sharply, climbing 1.7% in early trade. The industry is among the most exposed to U.S. trade threats, with vehicles and machinery being the EU’s largest exports to the United States. Shares of German carmakers advanced, with BMW up 1.4%, Mercedes-Benz gaining 1.5%, and Volkswagen rising 1.5%.
Trump initially announced on Friday via Truth Social that the 50% tariffs would begin on June 1, accusing the EU of being “very difficult to deal with” and saying trade talks were “going nowhere.” However, on Sunday, he said he had agreed to postpone the tariffs until July 9 following a phone call with European Commission President Ursula von der Leyen.
Von der Leyen later said in a post on X that the EU was “ready to advance talks swiftly and decisively.”
Elsewhere, Asian markets traded mixed overnight. Japanese and South Korean shares moved higher, while Chinese and Hong Kong-listed stocks recorded losses.
In the U.S., markets are closed Monday for the Memorial Day holiday. Wall Street stocks declined on Friday after Trump’s initial tariff threat targeting both the EU and tech giant Apple.
