Markets breathed a sigh of relief—briefly—after President Trump postponed his threatened 50% tariffs on EU goods, but analysts warn the reprieve is fragile. The White House confirmed the delay following a tense call with European Commission President Ursula von der Leyen, who pushed for more time to negotiate.
Trump took to social media, airing frustrations over the EU being "very difficult to deal with," yet European stocks opened higher Monday, clawing back from Friday’s slump. But beneath the surface calm, traders remain uneasy. **This isn’t peace—it’s a timeout.**
### **Europe’s Calculated Pushback vs. Trump’s Shock Tactics**
Von der Leyen signaled readiness to negotiate but set a hard deadline: **July 9.** Behind the scenes, EU Trade Commissioner Maros Sefcovic is set to meet US officials in a bid to revive stalled talks.
Holger Schmieding, Berenberg’s Chief Economist, sees a narrow path forward—**a bare-bones deal with 10% tariffs, minimal EU retaliation, and sector tweaks left for later.** But if Trump escalates to 20-30%? **"The EU would have no choice but to strike back,"** possibly targeting pharma and services.
Schmieding dismissed Trump’s hardball tactics as ineffective against Brussels: **"The EU won’t be scared into surrender."** With Europe’s economic heft, the US can’t afford to bulldoze its demands.
### **Investors Brace for More Turbulence**
Guntram Wolff of Bruegel didn’t hold back: **"This uncertainty is poison."** The core issue? **Nobody knows what Trump really wants.** The UK folded, China fought back—**Europe is walking a tightrope**, resisting without provoking.
Naeem Aslam of Zaye Capital Markets called the delay a **"short-lived confidence boost."** With tech and industrial firms in the crosshairs, markets will swing on every Trump tweet. **"Buckle up,"** he warned—**July 9 could be D-Day.**