How do U.S. tariffs affect the EUR/USD?
Concerns over US trade tariffs
The EUR/USD pair appreciated by +0.09% to 1.0828 amid heightened trade tensions. This week, Trump announced 25% tariffs on imported cars into the United States, starting April 3. Further reciprocal tariffs are expected, but their scope remains uncertain. These tariffs have revived concerns about economic growth and inflation in the United States, weighing on the dollar.
At the end of the week, the PCE Core Consumer Price Index rose to 2.8% in February, up from 2.7% in Ja nuary. Markets are widely anticipating a monetary pause by the Fed at the May FOMC meeting.
