Euro dips after Trump threatens 30% tariffs on EU imports

On Monday, the euro hit a three-week low after US President Donald Trump announced plans to impose 30% tariffs on European Union imports starting August 1, Reuters reported. The news weighed on the EU’s single currency as markets reacted to the potential trade escalation.

Last week, Trump told European Commission President Ursula von der Leyen and Mexican leader Claudia Sheinbaum about the new taxes being enacted. According to the news agency, both leaders criticized the move, calling it unfair. In response, the EU has temporarily held off on retaliatory measures, opting to seek a negotiated resolution before early August.

While the currency market’s reaction to Trump’s latest threat has been relatively muted, the euro initially slipped in early Asian trading before paring some losses. By Monday, it was down 0.12% from Friday’s close, Reuters commented.