Top officials at the European Union's executive commission says they're pushing hard for a trade deal with the Trump administration to avoid a 50% tariff on imported goods. Trump had threatened to impose the tariffs on June 1,

Key Takeaways The S&P 500 rose 2.1% on Tuesday, May 27, 2025, after President Trump postponed new tariffs on imports from Europe.Tesla shares gained after CEO Elon Musk vowed to dedicate more of his attention to the electrical vehicle maker.

Wall Street’s roller-coaster ride created by President Donald Trump’s trade policies whipped back upward on Tuesday, this time because of a delay for his tariffs on the European Union.

The European Union is seeking to accelerate trade talks with the US just six weeks before President Donald Trump’s threatened 50% tariffs come into effect.

President Donald Trump pulled back from threatening a larger trade war with Europe, again. On May 23, Trump said he would impose a 50% tariff on the EU starting on June 1. He later told reporters he felt no need to cut a deal.

"These retreats are so frequent that investors should rationally expect them. So why do markets still react to the initial announcements?" UBS's Paul Donovan noted.

European shares extended gains on Tuesday, led by defence stocks after U.S. President Donald Trump threatened additional sanctions on Russia, while relief from the reversal of tariffs on the region continued to boost sentiment.

French President Emmanuel Macron's Vietnam visit and Swedish automaker Volvo Cars' layoffs are both, in some ways, responses to Trump tariffs.