U.S. futures jump while Asian shares slip after Donald Trump delays tariffs on the EU

Trump delays EU tariffs, stock markets react, futures rise, Asian shares fall, oil prices steady, dollar weakens slightly.

U.S. futures jumped on Monday (May 26, 2025) and Asian shares mostly fell after U.S. President Donald Trump said he would delay a threatened 50% tariff on goods from the European Union to July 9, 2025 from June 1, 2025.

President Donald Trump announced the decision after a call on Sunday (May 25, 2025) with the President of the European Commission Ursula von der Leyen, who said she “wants to get down to serious negotiations,” according to the U.S. President's retelling.

Last week, Mr. Trump said on social media that trade talks with the European Union “were going nowhere” and that “straight 50%” tariffs could go into effect on June 1, 2025. The futures for the S&P 500 gained 1% while that for the Dow Jones Industrial Average advanced 0.8%.

In Asian trading, Tokyo's Nikkei 225 climbed 0.7% to 37,427.48 while the Kospi in Seoul picked up 1.2% to 2,622.07. Hong Kong's Hang Seng lost 1% to 23,370.94 and the Shanghai Composite Index fell 0.3% to 3,338.42. Australia's S&P/ASX 200 was nearly unchanged at 8,360.70. Other regional markets were mostly lower. On Friday (May 23, 2025), the U.S. stocks fell as traders weighed whether Mr. Trump's latest threats were just negotiating tactics.

The S&P 500 lost 0.7% to 5,802.82 to close out its worst week in the last seven. The Dow Jones Industrial Average dropped 0.6% to 41,603.07, and the Nasdaq composite sank 1% to 18,737.21.

Apple dropped 3% and was the heaviest weight on the S&P 500 after Mr. Trump said he's been pushing Apple CEO Tim Cook to move production of iPhones to the United States. He warned a tariff “of at least 25% must be paid by Apple to the U.S.” if it doesn't.

President Trump later clarified his post to say that all smartphones made abroad would be taxed, and the tariffs could be coming as soon as the end of June.