EUR/USD EXTENDS GAINS AS EU SUSPENDS RETALIATORY TARIFFS ON US GOODS
EUR/USD EXTENDS GAINS AS EU SUSPENDS RETALIATORY TARIFFS ON US GOODS
EU ANNOUNCES 90-DAY PAUSE ON RETALIATORY TARIFFS.
The European Union has agreed to suspend its planned retaliatory tariffs on U.S. goods for 90 days.
This decision aims to provide a window for negotiations following U.S. President Donald Trump's announcement of a 90-day pause on certain tariffs.
In the early European trading hours on Friday, the EUR/USD pair strengthened to 1.1385, marking its highest level since February 2022.
The pair currently trades near 1.1350, reflecting market optimism amid the tariff suspension.
Commission President Ursula von der Leyen emphasized that the EU's 90-day tariff suspension is contingent upon progress in negotiations.
She warned that if satisfactory discussions are not achieved, the EU is prepared to implement the retaliatory measures as initially planned.
The EU's retaliatory tariffs, if enforced, would target approximately €26 billion worth of U.S. goods, including items like bourbon whiskey, Levi's jeans, and Harley-Davidson motorcycles.
The suspension of these tariffs is expected to alleviate potential economic pressures on these sectors.
