Stocks rose Tuesday after President Donald Trump did a 180-degree turn on his threat to place a massive 50% tariff on goods imported from the European Union. The Dow closed higher by 741 points, or 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.

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.

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.

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

The storied sports car maker, which was facing challenges from China and slumping demand for electric cars, now has to grapple with tariffs from the Trump administration.

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.

Wall Street’s roller-coaster ride created by President Donald Trump’s trade policies whipped back upward on Tuesday, this time because of a delay for his tariffs on the European Union.