Good news for many Americans in France as US Dollar strengthens vs euro
The shifting exchange rate follows Trump’s trade deal between the EU and the US
The EU-US trade deal caused the euro to fall against the dollar by almost 2% from Friday last week (25 July)
Melnikov Dmitriy/Shutterstock
The dollar strengthened against the euro yesterday (July 28) following the announcement of a trade agreement between the US and the EU, offering a boost for Americans living in France.
The euro sits at 1.15 USD at the time of writing, a near 2% fall from Friday last week (25 July). This is after a relatively steady climb in the value of the euro vs the dollar since the beginning of the year.
US President Donald Trump and European Commission President Ursula von der Leyen met in Scotland to make the trade deal on July 27, seeing 15% tariffs on almost all European exports to the US, including cars.
This represents some three times the current 4.8% import tax rate, but is half the 30% tariff Trump initially threatened to implement.
The deal is thought to have avoided a potential trade war between the world’s two biggest economies.
France’s prime minister, François Bayrou, took to social media following the announcement, writing: “It is a dark day when an alliance of free peoples, united to affirm their values and defend their interests, resigns itself to submission.”
Read also: List: Industries in France at risk of price rises if Trump’s EU customs threat comes in
Benjamin Haddad, France's European Affairs Minister, also reacted on social media, saying that the trade deal will bring “temporary stability for economic actors threatened by the escalation of US tariffs,” but described the agreement as “unbalanced”.
Fluctuations between the euro and dollar have reflected the ongoing instability of EU-US trade relations.
The euro dropped to 1.025 USD in January 2025 - its lowest level since October 2022. This was due to concerns about the economic outlook in Europe and Trump’s reelection as US president.
The dollar dropped by more than 1% against the euro in April after Trump said he would sign an executive order instituting “reciprocal tariffs” on US imports.
