EUR/USD rises toward 1.1400 as Trump threatens to double import tariffs on steel, aluminum

• EUR/USD appreciates as the US Dollar declines following the Trump’s announcement of doubling import tariffs on steel and aluminum.

• Trump said that he is going to increase import tariffs from 25% to 50% to secure the US steel industry.

• European Commission said that Europe was prepared to retaliate against Trump's plan to increase import tariffs on steel and aluminum.

EUR/USD retraces its recent losses registered in the previous session, trading around 1.1370 during the Asian hours on Monday. The pair appreciates as the US Dollar (USD) struggles as the US Court of Appeals, on Thursday, ruling allowing US President Donald Trump's tariffs to take effect.

On Wednesday, a three-judge panel at the Court of International Trade in Manhattan said that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.

On Friday, President Trump said at a rally in Pennsylvania that he planned to double import tariffs on steel and aluminum to build up pressure on global steel producers and intensify trade war. "We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% - the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he said, per Reuters.

On Saturday, The European Commission (EC) warned that Europe was all set to hit back President Trump's plan to double tariffs on imported steel and aluminum, escalating the trade fight between two of the world's largest economic powers.

Earlier, President Trump delayed the tariff deadline on imports from the EU from June 1 to July 9. Meanwhile, the Brussels also agreed to accelerate trade talks with the United States to avoid a transatlantic trade war.

Last week, European Central Bank (ECB) Governing Council member Klaas Knot said that the current European inflation outlook is murky, challenging the central bank to engage in direct moves. ECB policymaker François Villeroy de Galhau noted that the “policy normalization in the Euro area is probably not complete.”