Trump's Trade Turnabout Fuels Frenzy: EU Awaits US-EU Deal Breakthrough

U.S. President Donald Trump withdrew his tariff threat on EU imports, invigorating trade negotiations between the two regions. Stock markets rose, but the trade policy's volatility left businesses and policymakers cautious. While hopes rose for a beneficial trade deal, concerns over concessions and uncertain plans remained.

U.S. President Donald Trump's decision to withdraw a tariff threat on European Union imports has reinvigorated trade discussions, according to a statement by the EU on Monday. Stock markets rallied, and the euro strengthened, following Trump's decision on Sunday to pause the tariffs initially set for next month.

The recovery of the pan-European stocks index and the euro's significant rise underscored market optimism. The concession emerged after a constructive dialogue with EU Commission chief Ursula von der Leyen. The change of stance highlights the rapid shifts in Trump's trade policy, leaving investors watchful.

Uncertainty persists as businesses like Germany's LAPP Group and Italy's ANFIA brace for potential volatility in the trade environment. EU talks led by trade chief Maros Sefcovic continue, aiming to strike a deal by the new deadline of July 9, balancing Washington's demands with EU interests.

(With inputs from agencies.)