European stocks gain as Donald Trump delays tariffs

European stocks rose as US President Donald Trump said he would move the imposition of 50% tariffs on EU goods to July 9 after a phone call with European Commission President Ursula von der Leyen, Bloomberg reports. 

Following the US leader’s announcement, the Euro Stoxx 50 grew 1.4% and the German DAX index gained 1.3% on Monday, the news agency notes. 

According to Bloomberg, stocks of European companies fell on Friday after Trump's threats to impose 50% duties on imports from the region starting June 1. The US President believes the EU is slow-walking negotiations and unfairly suing American companies. 

Chris Weston, head of research at Pepperstone Group in Melbourne, thinks this U-turn in the US administration's trade policy shows that Trump is using duties as a negotiating tool, with initial threats often softened.

Investors are already familiar with the American president's tariff course, says Tim Waterer, chief market analyst at KCM Trade. He believes markets start to moderate volatility in response to Trump's trade initiatives with each new country and region.