European shares closed higher on Tuesday with defence stocks boosting the market after U.S. President Donald Trump threatened additional sanctions on Russia, while optimism lingered from the delay of U.

Trump threatened to impose the costly tariffs on the European Union starting on June 1, complaining last week that the negotiations were “going nowhere.” He ended up delaying the tariffs on Sunday after speaking with the president of the European Commission.

MORRISTOWN, N.J. — President Donald Trump said Sunday that he would delay tariffs that were set to be imposed next week on the European Union until July 9.

The threat of 50% tariffs on the European Union is likely a negotiation tactic to force a dialogue on difficult issues such as nontariff barriers, according to strategists Jason Pride and Michael Reynolds at Glenmede.

French President Emmanuel Macron's Vietnam visit and Swedish automaker Volvo Cars' layoffs are both, in some ways, responses to Trump tariffs.

Trump came to the agreement during a phone call with Ursula von der Leyen, the president of the European Commission.