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BUZZ-COMMENT-Trump's EU tariff threat: advantage to EUR/USD bears?

ReutersFeb 27, 2025 10:03 AM

- EUR/USD bears hope President Donald Trump's threat to impose 25% tariffs on European Union goods exports to the U.S. helps turn the tide for a pair which is currently 3.5% above its early February low.

Asked on Wednesday if he has decided on a tariff rate for goods imported to the U.S. from the European Union, Trump replied: "We have made a decision, and we'll be announcing it very soon, and it'll be 25%, generally speaking".

Trump also said the EU takes advantage of the U.S. in different ways, and that the EU was formed "in order to screw the United States".

EUR/USD slid through 1.0500 courtesy of Trump's guidance on EU tariffs, having notched a one-month EBS high of 1.0529 shortly before he gave it.

The 27-month EBS low for EUR/USD at the start of this month was 1.0125, courtesy of tariff announcements and threats from Trump.

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