EUR/USD: US Dollar Flexes Against Euro as White House Slashes China Tariffs to 30% for 90 Days

Trump’s weekend in Geneva resulted in a trade deal which will also see US goods imported to China at levies of just 10%, down from 125%.

💸 Tariff Rollbacks Announced

• The US dollar advanced early Monday morning after traders digested the latest news out of the White House — tariffs on imports from China are getting substantially trimmed.
• The Trump administration announced today that tariffs on goods from China are coming down to just 30% from the previous 145%. China, on the other end, is reducing its tariffs on US goods to 10% from 125%.

💫 Major Currency Pairs Take a Dive

• The US dollar liked that — and rallied across the board. The EURUSD pair erased its daily gains and reversed course from a session high of $1.1242 to a session low of $1.1140.
• Other major currencies were also under dollar pressure — the USDJPY pair shot up to a one-month high of ¥147.00 and the British pound slumped under $1.3250 as the buck was breathing fire and wreaking havoc.

🎉 Markets Cheer De-escalation

• “We have reached an agreement on a 90-day pause and substantially moved down the tariff levels,” Treasury Secretary Scott Bessent said today, while also noting that negotiations will continue over the next few days or weeks, if needed.
• Stock futures were higher across the board with Nasdaq futures soaring more than 3%, extending their pre-market rally as antsy traders were eager to jump back to risk assets and buy the dip.