(BFM Stock Exchange) – The Parisian index increased more than 1% on Monday, May 26, when the American president decided to postpone the application of customs surcharges hitting European imports on July 9.

Small “phew” of relief on the Paris Stock Exchange this Monday, May 26. The CAC 40 won 1.37% at the start of the session at 7,831.01 points after Donald Trump finally postponed the application of customs surcharge to European products to July 9.

These surcharges were initially offset until June 1, at first. Last week, the tenant of the White House threatened to apply these additional customs duties of 50% from Sunday, then evoking very difficult “very difficult” commercial negotiations with the European Union. This had lost approximately 1.7% at CAC 40 on Friday.

Ultimately, on the night of Sunday to Monday, the American president announced to prolong this stay of just over a month, following a “very good conversation” with the president of the European Commission, Ursula von der Leyen.

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An always fragile market

“Europe is ready to advance negotiations quickly and decisively. To achieve a good agreement, we will need time until July 9,” said the president of the European executive on X.

This decision makes it possible to “temporarily mitigate the escalation of trade tensions”, observes Naeem Aslam of Zaye Capital. The market specialist also considers that Donald Trump and Ursula Von Der Leyen’s statements support market optimism because they report “a desire to engage in serious negotiations”.

“However, the feeling of investors remains cautious due to the unpredictable nature of trade policies and the risk of future volatility,” he adds.

“In summary, although the postponement of customs duties against the European Union has given a short-term boost to the term markets, the underlying concerns concerning trade relations and future economic indicators continue to weigh on the feeling of investors,” concludes Naeem Aslam.

“With the announcement yesterday (Sunday, editor’s note) of Donald Trump that he would leave more time for negotiations, with an increase in prices now scheduled for July 9, he again shows that he is retiring before the negative impact on the markets of his decisions,” observes Sebastian Paris Horvitz de LBPAM.

“It is difficult at this stage to determine with certainty where this confrontation will end. However, the most likely is that these 50% rates will not be applied. Donald Trump should go back. At the same time, it is possible that the rates can be established higher than the current 10%,” he continues.

“However, we keep the hypothesis of the status quo in our central scenario. But, obviously this new episode only increases the uncertainty already distilled by the erratic decisions of the new American government,” concludes the economist.