Euro rose in European trade on Monday against a basket of major rivals, resuming gains after a two-day hiatus and moving once more towards seven-month highs as markets assess the flexibility of Donald Trumps trade stance.

After the US imposed new tariffs on EU imports, European authorities started working on a batch of emergency measures to boost the most affected sectors and potentially impose counter tariffs on US products.

The Price

The EUR/USD price rose 0.7% today to $1.0982, with a session-low at $1.0901.

The euro fell 0.5% on Monday against the dollar on profit-taking away from seven-month highs at $1.1145.

Trumps Flexibility

Despite Trumps assertion that the recently imposed tariffs are permanent, he somewhat kept the door open for modifications.

In new statements, Trump said that tariffs on Chinese products could be permanent, however, he said the US is looking for an agreement.

As for the EU, Trump believes that shrinking the trade deficit with the EU is possible through bolstering US energy exports to the eurozone.

Otherwise, US Treasury Secretary Scott Bessent said Trump has conducted talks on tariffs with Japanese Prime Minister Shigeru Ishiba on Monday.

Bessent said that nearly 70 countries contacted the US administration to discuss the new tariffs, expressing hopes that negotiations with trade partners could lead to lower tariffs.

European Preparation

US tariffs on EU products were more aggressive than expected, with Trump imposing 20% tariffs on all EU imports.

European Commission President Ursula Von Der lyne described the tariffs as a pain hit to the global economy, and asserted the EU will issue countermeasures if negotiations with Washington failed.

She said the EU offered a zero for zero deal with the US to remove all tariffs on all sides and avoid an all out trade war.

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