US President Donald Trump announced on Sunday that the United States was imposing 15-percent tariffs on all European Union countries.

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 European Union and United States will develop a metals alliance to mitigate the impact of subsidised Chinese production on global markets as part of their trade deal, European Trade Commissioner Maros Sefcovic said on Monday.

The euro’s fall accelerated on Monday, putting the currency on course for its steepest one-day drop against the dollar since May, as investors bet that the EU-US trade deal would hurt the European economy. The single currency was down 0.9 per cent against the dollar at $1.164 in afternoon trading, and weakened by a similar amount against the pound.

The 15% tariff would be lower than previously threatened, but it would remain a high duty on America’s largest trading partner.

European stocks trimmed early gains as optimism around a US trade deal was replaced by lingering concerns that higher levies would crimp earnings.Most Read from BloombergThe High Costs of Trump’s ‘Big Beautiful’ New Car Loan DeductionCan This Bridge Ease the Troubled US-Canadian Relationship?

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