EUR/USD faces pressure as Macron warns China tariffs within months

EUR/USD traded lower at 1.0515, declining 0.2% (20 pips) as French President Macron's tariff threats against China raised concerns about potential trade tensions impacting European growth. In a Sunday interview with Les Echos, Macron warned Chinese officials that the EU would implement US-style tariffs on Chinese products "in the coming months" if trade surpluses aren't addressed. This escalation in trade rhetoric weighs on the euro as markets anticipate potential retaliation from China that could hurt European exporters, particularly Germany's manufacturing sector. The threat comes amid already fragile EU-China trade relations and adds to existing headwinds facing the eurozone economy. Technical indicators show EUR/USD testing support at 1.0500, with resistance at 1.0550. A breakdown below 1.0500 could accelerate selling toward 1.0480, while traders monitor upcoming ECB policy decisions and any concrete EU trade policy announcements.