Global Markets Brace for Impact Amid Trump's Tariff Turmoil
The euro and Mexican peso fell after U.S. President Trump threatened to impose 30% tariffs on imports from Europe and Mexico. The markets reacted with muted responses as investors have become desensitized to Trump's trade threats. The Federal Reserve's rate policy and China's economic data are also in focus.
The euro slipped to a three-week low on Monday, with the Mexican peso also under pressure, following U.S. President Donald Trump's announcement of a potential 30% tariff on imports from Europe and Mexico. Trump's announcement arrived via letters to European Commission leader Ursula von der Leyen and Mexican President Claudia Sheinbaum, shared on his Truth Social platform.
The European Union and Mexico criticized the proposed tariffs as unfair, but the currency markets showed a muted reaction in Asian trading. The euro recovered slightly later in the session, while the dollar saw modest gains against the Mexican peso and other global currencies, as investors seemed desensitized to Trump's frequent tariff threats.
In related financial developments, Trump's criticism of Federal Reserve Chair Jerome Powell reignited discussions on interest rates, ahead of fresh U.S. inflation data. Meanwhile, China's trade figures pointed to a rebound in exports, as investors anticipated further insights from upcoming GDP data regarding the health of China's economy amid U.S. trade tensions.
(With inputs from agencies.)
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