The U.S. dollar weakened against other major currencies as American stock futures rose, following President Donald Trump’s announcement to delay a planned tariff hike on the European Union.
The U.S. Dollar Index (DXY) initially declined but later recovered much of its losses throughout the trading session. In currency markets, the euro gained 0.5% against the dollar before ending the day up 0.1% at $1.1378.
On Sunday, President Trump revealed he had agreed to postpone a 50% tariff on EU imports until July 9. The move followed a phone call with European Commission President Ursula von der Leyen.
Trump described the conversation as “very nice” and said it led directly to his decision to delay the tariff increase.
According to Trump, von der Leyen signaled a strong interest in holding meaningful trade talks and requested that the tariff date be pushed back from June 1 to July 9. Trump agreed to the extension.
Von der Leyen also voiced confidence in the possibility of reaching a quick agreement.
This announcement marked a reversal from Trump’s comments on Friday, when he asserted he was “not looking for a deal” with the EU and intended to impose the 50% tariff on June 1.
That proposed rate followed a 20% retaliatory tariff Trump had placed on EU goods in April, which—along with other reciprocal measures—was also temporarily suspended.
