Dow Jumps Over 300 Points After Trump Delays EU Tariff Until July
- Sara Montes de Oca
- May 27
- 1 min read
U.S. stocks climbed on Tuesday after President Donald Trump announced a delay in imposing a 50% tariff on European Union imports.
The Dow Jones Industrial Average rose 318 points, or 0.8%. The S&P 500 added 1%, while the Nasdaq Composite advanced 1.2%.
Trump said Sunday that he would postpone the tariff until July 9, following a request from Ursula von der Leyen, president of the European Commission. The tariff had previously been scheduled to take effect on June 1.
Despite the delay, some analysts remain cautious. “We’re still hesitant to chase the S&P 500 at current levels,” wrote Adam Crisafulli of Vital Knowledge, pointing to ongoing macroeconomic risks tied to trade policy, fiscal uncertainty, and high equity valuations. While Trump’s most extreme tariff proposals may not come to fruition, his administration has enacted significant import taxes in recent months and may continue to do so.
Tesla shares rose 4% after CEO Elon Musk announced he would step back from political discourse to concentrate on his companies. Other tech names also saw gains, including Nvidia, AMD, Apple, and Microsoft.
The rebound follows a rough week for markets, during which the Dow, S&P 500, and Nasdaq each fell more than 2% amid concerns about Trump’s tariff agenda. Markets were closed Monday in observance of Memorial Day.
Traders are now eyeing corporate earnings, with Okta reporting after Tuesday’s close. Reports from Nvidia, Macy’s, and Costco are expected later in the week. So far, more than 95% of S&P 500 companies have reported quarterly results, with nearly 78% exceeding analyst expectations, according to FactSet.
