France’s President Emmanuel Macron gives a press statement near the Metropole Hotel before attending a state dinner in Hanoi on May 26, 2025.
Ludovic Marin | Afp | Getty Images
French President Emmanuel Macron visiting Vietnam and Swedish automaker Volvo Cars laying off employees might not appear to have much in common.
But they are, on some level, strategic maneuvers in response to U.S. President Donald Trump’s deployment of 50% tariffs on the European Union, which he later delayed.
Macron sealed a deal with Vietnam for the Asian country to buy 20 jets from European planemaker Airbus, building on an earlier agreement for a similar quantity.
And Volvo Cars’ layoffs reflected growing pressure on the company to cut costs. The Swedish automaker has already pulled a China-made car completely out of the U.S. markets because of Trump’s tariffs on Beijing. The company, which is owned by China’s Geely Holding, also withdrew its financial guidance for both 2025 and 2026, citing tariff pressure on the automotive sector.
Hence, while there may be sighs of relief in Brussels for now, Trump’s tariff bluster will continue to roil the global economy and investor confidence.
What you need to know today
European auto stocks rebound
U.S. futures jumped Monday night stateside on Trump’s delay of 50% tariffs on the European Union. Markets were closed Monday for the Memorial Day holiday. In Europe, the Stoxx 600 index added 0.99%, with all sectors in positive territory. European auto stocks rebounded from a 3% loss in the previous session to close 1.7% higher on Monday following news of the tariff postponement.
Rocky path ahead despite EU tariff delay
Investors cheered Trump’s delay of tariffs on the EU, driving U.S. futures and European markets higher. However, analysts are warning not to let optimism run unchecked. Berenberg Chief Economist Holger Schmieding told CNBC that even if a deal was struck to reduce import duties from the EU to 20% or 30%, “the EU would have no choice” but to impose “significant countermeasures” against the United States.
Vietnam agrees to buy 20 Airbus jets
During French President Emmanuel Macron’s state visit to Vietnam — the first by a French president in almost 10 years — the two countries signed an agreement to buy 20 Airbus A330neo planes, vaccines from French pharmaceutical company Sanofi and cooperate on nuclear energy, reported Reuters, citing a list of documents it had seen.
Volvo announces layoffs
Sweden-based automaker Volvo Cars on Monday said it would cut around 3,000 jobs, mostly office-based positions in Sweden, as part of a major cost-cutting drive. The move comes after the company, which is owned by China’s Geely Holding, announced an 18 billion Swedish kronor ($1.89 billion) cost and cash action plan late last month.
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