On Tuesday, the U.S. dollar weakened slightly against a range of risk assets after President Donald Trump announced plans to impose increased tariffs on countries purchasing energy resources from Russia. He also stated that tariffs on semiconductor and pharmaceutical imports would be introduced within the next week.

These statements triggered a wave of concern in global markets, as investors fear a renewed escalation of trade wars and their potential impact on global economic growth. In addition to the energy sector, technology companies—especially semiconductor manufacturers—came under pressure. The expected tariffs on semiconductor imports could raise the cost of electronic devices and affect the competitiveness of American companies that rely on imported components. Pharmaceutical firms are also facing uncertainty, as new tariffs could impact drug prices and the availability of medical products.

Just days after Trump revised his tariff plan—setting import duties on trade partners ranging from 10% to 41%—this new round of trade threats and deadlines underscores that his drive to reshape global trade in America's favor is far from over. And this comes despite recent economic data suggesting that the U.S. economy is already struggling with the consequences.

Taking a different approach to Asian powers, Trump said he would significantly raise tariffs on India within the next 24 hours, accusing the country of buying Russian oil. At the same time, he stated that he is close to reaching an agreement with China on extending the trade truce, which would involve reducing mutual tariffs and easing export restrictions on rare earth magnets and certain technologies.

India, which had hoped to attract manufacturers as part of Trump's tariff strategy, now faces double pressure. Trump announced that next week will bring tariffs not only on pharmaceutical products but also on semiconductors. Unlike Beijing, which has used its dominant trade position as leverage with Washington, Delhi lacks such influence. It's worth noting that Trump has recently threatened all buyers of Russian oil with additional duties, stepping up pressure on Russian President Vladimir Putin in an effort to force a ceasefire with Ukraine. These are the so-called secondary sanctions that Trump warned about late last week. When asked whether he would follow through on earlier threats to impose tariffs on other countries, including China, Trump responded, "We'll be doing that quite often."

"We'll start with a small tariff on pharmaceuticals, but within a year—18 months at most—it'll rise to 150%, and then 250%, because we want pharmaceuticals to be manufactured in our country," Trump said in an interview on Tuesday.

Nevertheless, Trump downplayed his desire for a meeting with Chinese President Xi Jinping, saying he would only want to see his Chinese counterpart in the context of efforts to conclude trade talks. "If we make a deal, I'll probably meet with him before the end of the year," Trump said. "If we don't make a deal, I won't meet with him."

It's worth recalling that the preliminary agreement between the U.S. and China expires on August 12. This initial truce helped ease fears of a tariff war that had threatened to paralyze bilateral trade between the world's two largest economies. It also gave both sides more time to address unresolved issues, such as tariffs related to fentanyl trade.

EUR/USD Technical Outlook

Currently, buyers need to focus on reclaiming the 1.1600 level. Only this would open the way for a test of 1.1640. From there, a move to 1.1665 may follow, although achieving this without support from large players will be difficult. The most distant target is the 1.1690 high. In the event of a decline, significant buyer activity is expected only around the 1.1555 level. If no demand is observed there, it would be prudent to wait for a retest of the 1.1518 low or to consider long positions from 1.1479.

GBP/USD Technical Outlook

Pound buyers need to overcome the nearest resistance at 1.3325. Only then can they aim for 1.3375, above which a breakout will be rather difficult. The most distant target is the 1.3425 level. If the pair declines, bears will try to regain control at 1.3290. A successful move below this level would deal a serious blow to the bulls and could push GBP/USD down toward the 1.3255 low, with a potential extension to 1.3217.