The euro surged against the US dollar following US President Donald Trump’s reciprocal tariff announcement on Wednesday night. The EUR/USD pair jumped 0.5%, or more than half of a US cent, to 1.0915 at 5:17 am, nearing a five-month high of 1.0953. The level almost recovered all the losses since Trump was re-elected on 5 November.
The US president said his administration would impose a minimum 10% tariff on all countries and additional levies on nations considered offenders. He displayed a chart listing the countries subject to higher tariffs, with China, the European Union, and Vietnam as the top three, facing rates of 34%, 20%, and 46%, respectively. The additional rate will push import duties on China to 54% on top of the existing 20% blanket tariffs.
