Oil prices rise after EU agrees Russian sanctions
PoundSterlingLIVE - Official White House Photo by Daniel Torok
Euro weakens against Pound Sterling after Trump tariff threat. The Pound to Euro exchange rate (GBP/EUR) rose through the key 1.19 barrier in Friday trade after U.S. President Donald Trump threatened to impose a 50% tariff on all European Union imports starting June 1, accusing the bloc of unfair trade practices.
In a Truth Social post, Trump claimed the EU was “formed for the primary purpose of taking advantage of the United States on trade,” citing “powerful trade barriers” and “unjustified lawsuits against American companies.”
The developments sent a jolt through markets, where investors were getting used to the idea that the worst had passed on the trade war front.
GBP/EUR was higher 0.20% at 1.1918, ensuring our Week Ahead Forecast published on Monday is playing out beautifully:
Above: GBP/EUR at daily intervals with annotations sketched in Monday’s Week Ahead Forecast.
U.S. equity markets reacted swiftly, with S&P 500 and Nasdaq 100 futures falling 1.1% and 1.3%, respectively. Trump also warned he would apply a 25% tariff on Apple Inc. products if the company failed to manufacture iPhones in the U.S., sending Apple shares (NASDAQ:AAPL) lower.
The move came just days after the EU offered a new trade proposal that included tariff reductions and cooperation on issues like energy and AI. However, U.S. Commerce Secretary Howard Lutnick dismissed the EU effort, calling negotiations “impossible.”
In response, the EU is preparing retaliatory tariffs targeting €95 billion ($107 billion) of U.S. exports, even as it temporarily delayed a separate set of duties on U.S. steel and aluminium.
An original version of this article can be viewed at Pound Sterling Live