Trump's Tariff Threats Weigh on Euro: ECB Considers Rate Cut Amid Trade War Fears

The Euro faces headwinds as former US President Donald Trump threatens large-scale tariffs on the Eurozone and Canada, sparking fears of a trade war. This scenario raises concerns about economic slowdown and inflationary pressures. European Central Bank policymaker Pierre Wunsch suggests a rate-cut pause in April, but traders anticipate further easing amid economic risks. Trump's proposed 25% tariffs on auto imports, effective April 2, particularly threaten the German economy, a major exporter to the US. The EUR/USD pair saw some gains after hitting a three-week low, but the overall outlook remains fragile amid these developments.