EUR/USD Drops Below 1.1800 on Renewed Tariff Fears, EU-US Trade Deal in Focus

EUR/USD Drops Below 1.1800 on Renewed Tariff Fears, EU-US Trade Deal in Focus

Trump’s Tariff Threats Pressure Euro While EU Retail Data Looms

The EUR/USD pair moved lower to 1.1780 during early Asian trading on Monday, reversing some of last session’s gains. The decline comes amid renewed fears of a trade war after US Treasury Secretary Scott Bessent confirmed that President Donald Trump plans to issue tariff letters to several trading partners.

Bessent said that if trade negotiations don’t progress, tariffs may return to April 2 levels by August 1. While not setting a hard deadline, the move increases pressure on the EU and others to reach agreements swiftly.

Further supporting this narrative, Commerce Secretary Howard Lutnick confirmed that new tariffs will go into effect August 1, with Trump expected to sign 12 to 15 tariff letters as early as Monday. Lutnick added that most trade negotiations or letters will be finalized by July 9, keeping pressure high in the coming days.

EU Retail and German Production Data in the Spotlight

Amid trade tensions, attention turns to today’s economic releases from the Eurozone, particularly Retail Sales and German Industrial Production. Both will provide insight into the region’s economic resilience as policymakers push for a framework EU-US trade deal, which the European Commission stated is nearing completion.

Explore the EUR/USD live chart for real-time movements.
Read our Eurozone macro outlook for updated data analysis.

Key Takeaways

• EUR/USD trades near 1.1780, slipping below 1.1800 on Monday.
• Trump tariff threats increase trade war fears, pressuring the Euro.
• EU Commission nears a new trade agreement with the US.
• Traders await Eurozone Retail Sales and German Industrial Production data.