Global stock markets mark time as Trump postpones tariffs deadline

Shortly before the three-month pause on his “Liberation Day” tariffs was set to expire, Trump said he would give governments an extra three weeks to hammer out deals

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Major stock markets marked time on Tuesday after President Donald Trump extended his tariffs deadline and hinted at a further pushback, though uncertainty over US trade policy capped gains.

Shortly before the three-month pause on his "Liberation Day" tariffs was set to expire, Trump said he would give governments an extra three weeks to hammer out deals to avoid sky-high levies on exports to the world's biggest economy.

"The Trump administration's latest announcements on tariffs offered some relief to financial markets," noted AJ Bell investment analyst Dan Coatsworth.

"On the flipside, this only extends the uncertainty with markets likely to spend the next three weeks trying to guess the ultimate outcome." Trump has sent out letters to more than a dozen countries - including top trading partners Japan and South Korea - setting out what he intends to charge should they not reach agreements by August I, which replaces Wednesday's deadline.

Investors tentatively welcomed the delay amid hopes officials will be able to reach deals with Washington, with some observers seeing the latest move by the president as a negotiation tactic.

The letters said Japan and South Korea would be hit with 25-percent tariffs, while Indonesia, Bangladesh, Thailand, South Africa and Malaysia faced duties ranging from 25 per cent to 40 per cent.