EUR/USD Rises Toward 1.1400 as Trump Delays EU Tariff Decision to July

EUR/USD Nears 1.1400 as Trump Delays EU Tariffs to July 9

The EUR/USD currency pair extended its gains on Monday, trading close to 1.1390 during the Asian session, as traders reacted to U.S. President Donald Trump’s decision to delay the imposition of 50% tariffs on European Union (EU) imports. The new deadline is now set for July 9.

The Euro received additional support following a statement from European Commission President Ursula von der Leyen, who said the EU was ready to move swiftly in trade negotiations with the U.S., but emphasized that more time was needed to reach a fair agreement.

This shift in sentiment helped strengthen the Euro while the U.S. dollar came under renewed pressure. Markets are also reacting to broader concerns over the U.S. economy, including a recent credit rating downgrade by Moody’s and growing fears over rising fiscal deficits. President Trump’s proposed “One Big Beautiful Bill” has raised worries about prolonged high bond yields, which could further increase borrowing costs for households and businesses.

The dollar's weakness was further exacerbated by the Memorial Day holiday closure in U.S. markets, limiting liquidity and adding to the Euro’s momentum.

Trump originally announced on Friday that the U.S. would impose a 50% tariff on EU imports beginning June 1, claiming that negotiations with the bloc had stalled. However, the decision was revised over the weekend as EU officials showed willingness to advance the discussions.

Market watchers now await further developments ahead of the July deadline, which could significantly impact currency and trade flows between the two economic powers.