| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:30 | Switzerland | Producer & Import Prices, m/m | June | -0.5% | 0.2% | -0.1% |
| 06:30 | Switzerland | Producer & Import Prices, y/y | June | -0.7% | -0.6% | -0.7% |
EUR traded flat against most of the other major currencies in the European session on Monday as investors weighed the latest threat from U.S. President Donald Trump to impose a 30% tariff on the European Union (EU) goods.
The single European currency strengthened versus AUD and SEK but changed little against the other major rivals.
Trump announced on Saturday that he would send the letter to the EU, warning of the imposition of a 30% tariff on most imports from August 1, even as trading talks between the U.S. and the bloc continue.
In response to the U.S. leader’s decision, the EU’s officials said they will continue working towards a trade agreement with the U.S. and keep tariff countermeasures on hold until the August deadline.
However, Germany's finance minister Lars Klingbeil stated on Sunday that the bloc should “take decisive countermeasures”, “if a fair negotiated solution does not succeed.” According to media reports, the EU is readying a EUR21 billion retaliatory tariff package should trade talks with the U.S. break down.
Markets interpreted Trump’s fresh tariff threats as a negotiating tactic to force the trading partners to strike a deal rather than as an imminent outcome. It is widely believed the EU will negotiate a better trade deal than indicated in Washington's latest tariff letter, but it is doubtful whether the bloc will manage to secure a 10% tariff rate on most imports.
European trade commissioner Maros Sefcovic said he will speak with U.S. counterparts later on Monday, noting that the EU needs to be prepared for all outcomes, including possible countermeasures.