- The EUR/USD falls sharply after Trump announces new tariffs on Japan and South Korea.
- US President Trump publishes official tariff letters in Truth Social, addressing Japan and South Korea with 25%taxes.
- The feeling of the market is still fragile, since investors fear an interruption in global commercial flows.
The euro (EUR) is still under pressure on Monday, after briefly falling below the 1700 brand against the US dollar (USD), after the publication of official tariff letters by the president of the USA Donald Trump in Truth Social. The letters went to Japan and South Korea with taxes of 25% and warned that similar measures could affect up to a dozen more countries for August 1. The renewed commercial tensions disturbed global markets, promoting the demand for safe refuge for the dollar and weighing on the euro.
At the time of writing, the EUR/USD is quoted around 1,1708 during the American session, lowering 0.50% in the day. Meanwhile, the American dollar index (DXY) is rising, around 97.50 while the feeling of risk remains fragile.
Concerns are growing that more countries could be affected by new US trade measures, which could interrupt global commercial flows, reduce investor confidence and weigh strongly on the feeling of the market in general.
In letters aimed at the leaders of Japan and South Korea, US President Donald Trump informed the leaders of these countries that the US will impose a 25% tariff on all the goods that come from their countries, effective as of August 1. He said that these new tariffs are destined to address the historic commercial gap between the US and these nations, blaming Japan and Korea for using unfair commercial practices, such as high import taxes and other barriers. Trump also said that if any of the countries responds by increasing their own tariffs, the US will add even more taxes in addition to 25%. However, the companies of Japan and Korea that manufacture products within the US will not face these tariffs. Trump explained that the objective is to protect the US economy and reduce the commercial deficit, which he described as a threat to national security.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
