Trump announced on Sunday that he would postpone the 50% tariff on European Union imports until July 9. His decision followed a request from the head of the European Commission, who posted on social media that the union is prepared for swift talks to resolve trade issues.
Earlier on Friday, Trump’s announcement of these steep duties unsettled market participants. With trading halted on Memorial Day, investors had limited opportunities to respond, and the major market indexes all dropped by more than 2% during the previous week. Concerns over tariff measures paired with rising debt worries added to the overall decline in investor confidence.
In addition to the EU tariffs, Trump targeted foreign smartphone manufacturers on Friday. He declared that a 25% duty would apply to all imported smartphones and urged companies such as Apple and Samsung to move manufacturing operations to American soil. This directive has put additional pressure on firms that depend on overseas production and sparked debate among industry insiders.
Market focus now shifts to a week brimming with economic releases. Data on durable goods, housing trends, and consumer confidence is set to be published, and these reports could influence trading sentiment in the near future. Officials from the national banking system are expected to indicate that interest rates will remain at current levels, following earlier communications. Debate over a contentious tax measure that barely passed in the House last week continues to stir discussion.
Gold prices have also seen a pullback following an impressive performance earlier this year. Tariff uncertainties led investors away from risk-sensitive assets as talks between Washington and Brussels made progress. Responding to statements from European officials promising to accelerate discussions to avoid a trans-Atlantic dispute, gold fell to around $3,347 per ounce after a minor decline on Monday. Gold-backed funds have recorded five straight weeks of outflows since reaching a peak in mid-April.
Investors remain cautious as factors such as a growing US deficit, ongoing trade talks, and conflicts in the Middle East and Ukraine add to uncertainty. Market sentiment stays reserved as participants await new policy announcements and economic updates. These trends attract analysts.