Global Markets Rally as U.S. Considers Tariff Changes on Autos

Global stock markets moved higher on Tuesday after U.S. President Donald Trump hinted at easing tariffs on imported vehicles, offering a breather to investors rattled by ongoing trade tensions.

Trump suggested he might adjust the current 25% tariffs on car and auto parts imports from countries like Mexico and Canada. This came shortly after his decision to exclude some electronics — such as smartphones and computers — from planned tariff hikes.

The news sparked a broad market rally. Europe’s STOXX 600 index climbed 1%, led by a 2% surge in auto stocks. Germany’s DAX also rose 1%, the UK’s FTSE 100 was up 0.8%, while France’s CAC 40 edged up just 0.2% due to weak performance in the luxury sector.

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Asian markets followed suit. MSCI’s Asia-Pacific index (excluding Japan) gained 1.1%, and Japan’s Nikkei rose 0.8%, boosted by auto giants like Toyota and Denso.

U.S. stock futures held steady after two straight days of gains on Wall Street — the first such streak since Trump unveiled his tariff plan in early April.

Market analysts noted that targeted tariff exemptions have helped calm fears of a full-blown trade war. However, uncertainty remains, particularly after reports that China has halted new Boeing aircraft purchases, adding fresh strain to the global outlook.

In bond markets, U.S. Treasury yields remained stable after recovering from last week’s sharp selloff. The 10-year yield ticked up to 4.387%, and the two-year yield rose slightly to 3.86%. Federal Reserve officials remain divided, with some supporting a rate pause and others warning about the economic impact of trade policies.

Currency markets reflected cautious sentiment. The euro traded near a three-year high at $1.1328, while the dollar weakened further — nearing a 10-year low against the Swiss franc. The pound also gained ground.

In commodities, oil prices slipped after the International Energy Agency lowered its global demand forecast. Brent crude fell 0.4% to $64.62 per barrel, and U.S. crude dropped 0.5% to $61.26. Gold inched up 0.3% to $3,219 an ounce, approaching record highs.