European stock markets soared on Thursday, buoyed by easing trade tensions after U.S. President Donald Trump announced a 90-day delay in the implementation of reciprocal tariffs for countries that have not retaliated. The decision came as a relief to global investors and helped drive a powerful rally across European indices, mirroring Wall Street’s gains from Wednesday.
As of 9 am CET, Germany’s DAX index jumped 8.37%, the EURO STOXX 50 surged 8.78%, the FTSE 100 rose 5.96%, and France’s CAC 40 climbed 2.27%. The euro gained 0.27% against the dollar, trading at $1.09815, while the pound strengthened 0.38% to $1.28688.
European leaders reacted positively to the pause. European Commission President Ursula von der Leyen welcomed the move as a constructive gesture. In Spain, Prime Minister Pedro Sanchez called the temporary truce a “chance to resume dialogue” and emphasized that “no one benefits from tariff wars.”
Trump’s tariff delay follows a steep 125% hike on Chinese goods earlier this week, escalating tensions with Beijing, which had retaliated with an 84% duty on U.S. imports. While China remains subject to the full tariff rate, over 75 countries including India, South Korea, Japan, and Vietnam will benefit from the reduced 10% rate during the three-month negotiation window.
The temporary truce has provided a much-needed lift to market sentiment, with traders hoping it could pave the way for broader trade talks and ease fears of a prolonged global trade war.
