Trump Signals Progress in U.S.-EU Trade Talks, Markets React Favorably

U.S. President Donald Trump on Tuesday described renewed contact from European Union officials as a “positive” development in long-stalled trade negotiations, sending a modest wave of optimism through financial markets on both sides of the Atlantic.

In a post on his Truth Social platform, Trump stated, “I have just been informed that the E.U. has called to quickly establish meeting dates,” adding that he hopes the bloc will “finally” open up to more U.S. trade access.

The remarks come days after the White House delayed a threatened 50% tariff on EU imports until July 9, giving negotiators a short window to avoid further escalation. The original threat of sweeping tariffs — announced last Friday — had rattled global markets, with European officials warning of potential retaliatory measures.

Tuesday’s comments sparked a rebound in sentiment. Europe’s Stoxx 600 index extended gains, ending the day up 0.55%, while U.S. markets opened broadly higher. Investors interpreted the outreach as a sign that both sides may be seeking a resolution ahead of the new deadline.

European Commission President Ursula von der Leyen stated over the weekend that the EU was “ready to advance talks swiftly and decisively.” European Trade Commissioner Maros Sefcovic echoed the sentiment, citing productive conversations with U.S. Commerce Secretary Howard Lutnick.

The current standoff follows a series of tariff hikes. On April 2, the U.S. imposed a 20% tariff on EU goods under Trump’s “reciprocal trade” framework. That was later scaled back to 10% for most trading partners, but threats of auto, steel, and aluminum duties remain in place.

EU leaders have expressed willingness to negotiate but warned against accepting one-sided terms. Earlier this month, the European Commission began consultations on retaliatory tariffs worth €95 billion ($107.4 billion) should a deal fail to materialize.

Meanwhile, the U.S. recently announced a preliminary trade agreement with the United Kingdom — the first under Trump’s current term — which retains a 10% baseline tariff on U.K. imports. The administration continues to differentiate the U.K.'s trade conduct from that of the broader EU, accusing the latter of unfair treatment in goods trade.

With negotiations now back on the calendar, investors and trade observers await details on the upcoming U.S.-EU meetings and whether the July 9 deadline will yield an agreement or further tension.