On July 13th, the EU has been trying to reach an interim agreement with the United States to avoid higher tariffs, but Trump's letter shattered the EU's recent optimism.

However, Trump did leave room for further adjustment. Brian Jacobsen, Chief Economist at Annex Wealth Management, wrote, "As with past letters, there are plenty of conditions and terms for reducing these tariffs, which is perhaps why the market may not like tariff negotiations but also isn't panicking about them." (FXStreet)