Alicante’s export sector is already feeling the strain from the latest trade deal between the European Union and the United States

Higher tariffs, or import taxes, on European goods mean sellers in the U.S. would have to either increase prices for consumers — risking loss of market share — or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy.

The US and EU strike a tentative trade deal imposing 15% tariffs, averting a costly trade war, but critics say it remains unbalanced and incomplete.

Uncertainty has been a key theme for the dollar in 2025, and the unpredictability of the president’s stance on trade is about to reach new levels.

The European Central Bank is leaving interest rates unchanged as it waits to see the impact of U.S. President Donald Trump’s tariffs on the economy before deciding whether to cut rates again.

The dollar edged higher against the euro on Thursday following progress in U.S. trade talks with key partners, but was mixed versus the yen, which got a lift from expectations for higher rates while political risks weigh.