Trump's Tariff Talk Tanks Euro: Global Economic Fear Reignites
President Trump's announcement of a 50% tariff on the European Union from 2025 has sparked concern over U.S. trade relations, reversing euro gains. The move comes amidst focus on U.S. fiscal policies and global economic vulnerabilities, affecting currencies, especially the yen and Swiss franc, as investors seek safe havens.
The euro tumbled on Friday, erasing initial gains after U.S. President Donald Trump proposed a substantial 50% tariff on the European Union, set to take effect June 1, 2025. This move has reignited concerns over global trade dynamics and their economic repercussions.
Trump's recommendation marks his latest attempt to pressure the EU, criticizing their negotiating tactics. His stance comes amid rising tensions due to his proposed 25% levy on non-U.S. made Apple iPhones and as investors focus on America's $36 trillion debt, following a recent Moody's downgrade.
The yen surged as investors sought alternatives to the volatile dollar, which is poised for its first weekly decline in five weeks. Additionally, Japan's latest inflation data suggests potential rate hikes, further impacting global currency markets as investor focus shifts back to U.S. trade policies.
(With inputs from agencies.)
Google News