Will the Euro collapse on US Tariffs? Traders eye 1.15Euro vs US DollarTHINKMARKETS:EURUSDThinkMarketsThe EURUSD is under pressure today, dropping nearly half a percent. This follows the new US–EU trade deal that introduces a 15 percent baseline import tariff on most goods. That means Americans buying European products must now pay 15 percent more. Naturally, markets are adjusting. When one side of a trade deal takes the hit, its currency often weakens. In this case, the euro is sliding as the cost of EU exports rises. If the euro were to fall by the full 15 percent in response, we could see EURUSD drop to parity again. That would balance the new cost for American buyers, making European goods just as affordable as before. Still, the technical outlook remains neutral. The trend on EURUSD remains bullish until a break below 1.15 occurs. If that happens, it could open the door to 1.12 or even 1.10. Until then, traders watching the chart may stay cautious. One reason why the EURUSD might gain is that President Trump continues to pressure the Federal Reserve to cut interest rates. If the Fed caves while inflation is still rising, the US could face the same issues that have plagued countries like Turkey, where political pressure has undermined monetary stability and triggered runaway inflation. In that case, the euro might strengthen, pushing EURUSD back toward 1.20 or higher. Is this the peak for EURUSD or just a pause before the next leg higher? The next few weeks will reveal the answer. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.