European companies in China have ranked a domestic slowdown in the world’s second-largest economy as a bigger challenge for them than the trade war, underlining the hurdles for Beijing as it negotiates with the US on tariffs.

Wall Street’s fear gauge settled down after the delay in EU tariffs eased some jitters among traders. The CBOE Volatility Index, or VIX, was down to 19.30 on Tuesday after spiking north of 25 during Friday’s session.

The extension offers the EU a reprieve, after President Trump threatened a 50% tariff that was set to take effect on June 1.

Trump agrees to extend the proposed 50% EU tariff to July 9, 2025, after a call with European Commission President Ursula von der Leyen. Talks are set to "begin rapidly," he said.

European Union countries backed plans on Tuesday to scale back the bloc's carbon border levy to cover just 10% of the companies currently covered by the scheme, on the grounds that these firms account for nearly all of the emissions involved.

The European Union is seeking to accelerate trade talks with the US just six weeks before President Donald Trump’s threatened 50% tariffs come into effect.

The European Union has agreed to fast-track trade talks with the US in a bid to avoid President Trump's 50% tariffs — which, in an about-face, he announced would be delayed until July 9. On Tuesday, a Bloomberg report said that the EU's trade chief,

European shares extended gains on Tuesday, led by defence stocks after U.S. President Donald Trump threatened additional sanctions on Russia, while relief from the reversal of tariffs on the region continued to boost sentiment.