The Euro fails to extend its rally for the fourth consecutive day, as high uncertainty surrounding the trade relationship between the EU and the US and the threat of facing 30% tariffs from August 1 are starting to undermine speculative demand for the common currency.

Dassault Aviation has blamed the twin pressures of a still-troubled supply chain and the uncertainty caused by potential US tariffs for the sluggish first-half performance of its Falcon business jet family.

“Further euro strength is likely to be self-defeating,” said Valentin Marinov, a currency strategist at Crédit Agricole, a French bank. Exports were already likely to weaken and become a drag on the eurozone economy because of U.S. tariffs and European government policies that would encourage more imports.

Jeep owner Stellantis said on Monday it suffered a massive loss in the first half of the year, when it felt the first impact of new US tariffs and took a massive charge following a change in US laws.

Stellantis reported a substantial net loss of 2.3 billion euros in the first half of the year, impacted by new US tariffs and significant charges related to legislative changes. North American sales declined sharply,

Major stock markets slipped on Tuesday as New York backed off its record highs and European markets fretted over an August 1 deadline for the EU to avert steep tariffs

The euro zone saw rising bond yields as Japan's trade deal with the U.S. mitigated tariff concerns. Recent focus had been on deflationary risks from U.S. trade policies. The deal promises reduced auto import tariffs,

UBS warns Trump’s proposed US tariffs could significantly impact Greece’s exports, posing risks to growth through 2026.

The EU as a whole has an annual trade surplus with the United States of $235.6 billion, according to the Bureau of Economic Analysis (BEA), which reports to the U.S. Department of Commerce. Only China has a higher amount. Ireland has the largest surplus among EU members, at $86.7 billion.