European markets poised to surge at the open following Trump’s tariff policy reversal

European markets are on the path to jump sharply when trading begins today (Thursday) after US President Trump yesterday had reversed course on tariffs, sending global markets higher.

In a turbulent week for equities characterized by significant market swings both up and down, the pan-European Stoxx 600 ended Wednesday down 3.5%, marking its lowest closing level since January 2024.

Later on Wednesday, Trump unexpectedly reduced tariff rates on imports from most U.S. trade partners to 10% for a 90-day period — a significant reversal from his earlier stance, where he firmly stated that the tariffs would remain. This policy shift coincided with the implementation of Trump’s so-called reciprocal tariffs, which took effect the same day and targeted nearly 90 countries.

President Trump stated that China’s tariff rate was raised to 125%, while earlier that same day, China had announced it would increase tariffs on U.S. imports to 84%.

The European Union also responded on Wednesday, as EU lawmakers approved the bloc’s initial round of countermeasures against the steel and aluminum tariffs the U.S. imposed in March.

Following Trump’s announcement, U.S. stocks surged, with the S&P 500 jumping more than 9% during Wednesday’s session — marking its third-largest single-day gain since World War II.