A bullish turn in the European carbon market on Monday came as no surprise following news that President Trump had once again reversed course on tariff threats, postponing them until July 9.

The EUA Dec’25 contract climbed as high as €73.37 before ending the day at €73.03, marking a 2.05% daily gain and fully recovering the losses sustained over the previous three trading sessions.

However, the market’s reaction was more muted than anticipated, failing to surpass last week’s high of €73.78 recorded on Wednesday morning. Also noteworthy was the traded volume—just 13.3 million allowances—marking the lowest level since May 1, as both British and U.S. markets were closed due to public holidays.

Traders have observed that energy-related markets are becoming increasingly indifferent to Trump’s tariff threats. “In general, Trump does not appear to cause as big fluctuations in the markets as he did a month or two ago,” wrote Mind Energy in a note this morning.

“Markets are getting more accustomed to Trump’s threats and now partly assume the full threat won’t immediately materialize,” Deutsche Bank analysts noted regarding stock markets, adding that “there is certainly fear fatigue.”

On Tuesday morning, the European carbon market opened with a downward correction, as the brief euphoria triggered by the tariff delay quickly faded. However, bullish pressure could build amid supply disruptions in Norwegian gas production. An unplanned capacity cut was announced at Visund this morning “for an uncertain duration,” further restricting flows to Europe.