The euro weakened against the dollar as Trump threatened 30% tariffs on EU imports, sparking trade tensions and market uncertainty. Currency traders shifted to safe-haven assets, strengthening the dollar and further pressuring the euro due to sluggish growth in the eurozone. Economists warn of potential fallout from a tariff war, impacting transatlantic commerce and weakening investor confidence. Eurozone economic data, including subdued German manufacturing activity, adds to the euro’s challenges. With the dollar’s strength and diverging monetary policies, the euro faces choppy waters ahead, with caution advised amid growing political risk and trade tensions.

Read more at Investing.com: Currency Markets React to Trump’s EU Tariff Plan