FX.co ★ Euro Slips as Markets Await US Tariff Details

On Monday afternoon, the euro dipped closer to the $1.17 mark as investors sought further details regarding forthcoming US tariff policies. The European Union reported progress toward a trade agreement with the United States, aiming to avert significant tariff increases by proposing an initial deal. This deal would implement a universal 10% tariff on a variety of goods, though it suggests lower rates for critical industries such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. Nonetheless, the EU announced it is gearing up for potential retaliatory tariffs on American goods should the US proceed with President Trump's metal tariffs. Officials cautioned that failure to reach an agreement could result in additional countermeasures, including export controls and limitations on US access to public contracts. Concurrently, US Commerce Secretary Howard Lutnick indicated that the introduction of a broader US tariff package, originally scheduled for July 9, has been deferred to August 1. In terms of monetary policy, the markets are currently factoring in only one more interest rate reduction from the European Central Bank this year.