President Trump decided to delay new 50% tariffs on goods from the European Union until July 9, giving both sides more time to work things out. Originally, the tariffs were set to start on June 1. The announcement came after a phone call between Trump and EU Commission President Ursula von der Leyen.

After the delay was confirmed, European markets recovered on Monday morning, bouncing back from losses caused by the original tariff threat. Von der Leyen said the EU is ready to move forward with negotiations quickly and hopes to reach a deal by the new deadline.

Still, experts warn that this doesn’t mean the risk is over. Some believe Trump is using pressure tactics to push the EU into making trade concessions. Economists say the delay may not be long enough to solve all the issues, though a basic agreement might be possible if both sides are willing. One likely outcome could be a smaller tariff of around 10%, rather than the full 50%, with the EU possibly avoiding strong retaliation.

Analysts also say it's unclear what exactly Trump wants from the EU, which creates confusion and uncertainty in the market. This makes it harder for businesses to plan ahead. The EU is taking a calm and steady approach, avoiding harsh reactions for now, but may have to respond strongly if larger tariffs are enforced.

Investors should prepare for more ups and downs. Some sectors like technology and manufacturing may be hit the hardest if things escalate. Experts say the next key date is July 9, and until then, markets will likely react to every new update, tweet, or rumor.

As one market analyst put it: “Buckle up – this ride’s far from over.”