The euro slipped to its lowest level in seven weeks during early Asian trading on Sunday after US President Donald Trump threatened to impose new tariffs on imports from several European countries unless the United States is allowed to purchase Greenland.
Trump said an additional 10% tariff would take effect on February 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the United Kingdom, all countries that are already subject to existing US trade duties.
The threat triggered sharp criticism across Europe, with several governments condemning the move as economic coercion. France, in particular, called the proposal “blackmail” and suggested responding with countermeasures, raising concerns over a potential escalation in transatlantic trade tensions.
In early trading on Sunday, the euro fell 0.1% against the US dollar to $1.1582, its weakest level since November 28, reflecting heightened investor uncertainty and risk aversion following Trump’s remarks.
Market analysts said the renewed tariff threats have increased pressure on the euro, as investors weigh the potential economic fallout for Europe’s export-driven economies and the broader implications for global trade stability.
Euro, Dollar Equal in Exchange Rates for 1st Time in 20 Years
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