The U.S. dollar weakened against major currencies as U.S. equity futures climbed following President Donald Trump’s decision to delay a planned tariff hike on the European Union.
The U.S. Dollar Index (DXY) initially fell but later recouped most of its losses. Meanwhile, the EUR/USD pair climbed as much as 0.5% before easing slightly to end the day 0.1% higher at $1.1378.
Trump Postpones 50% Tariff on EU Imports
On Sunday, President Trump announced he would postpone a planned 50% tariff on EU imports until July 9. The decision followed a phone call with European Commission President Ursula von der Leyen, which Trump described as “very nice.”
According to Trump, von der Leyen requested the delay to allow time for serious negotiations, asking that the June 1 implementation be pushed back. Trump agreed to the request, signaling a temporary de-escalation in trade tensions.
Tone Shifts from Confrontation to Cooperation
Von der Leyen reportedly conveyed optimism about reaching a resolution quickly. The move marks a notable shift from Trump’s tone on Friday, when he said he was “not looking for a deal” and intended to proceed with the tariff hike on June 1.
Context: Previous Tariff Actions Also Delayed
The 50% tariff was intended to follow a previously announced 20% reciprocal tariff imposed on the EU in April. That measure, along with other retaliatory tariffs, had also been delayed.
