Trump's sudden 90-day suspension of most tariffs dominated morning headlines, though he maintained increased duties against China. This reversal, which Trump had hinted at before markets closed yesterday, sent European markets upward with the DAX making significant gains. By midday, the EU responded by suspending its retaliatory tariffs for the same period.
The afternoon brought confirmation that the CDU/CSU-SPD coalition agreement had secured CSU approval. Former Chancellor Merkel publicly endorsed the deal as "exactly what I always wanted." Reports emerged that negotiations between Merz and Klingbeil had nearly collapsed before reaching agreement.
By evening, a new escalation unfolded as Trump increased China tariffs to 145%, sending US markets plunging with Nasdaq down 6%. The day concluded with breaking news of a helicopter crash in New York's Hudson River with multiple fatalities reported.