The U.S. dollar is down 6% versus the euro so far in 2025, which means European vacations are unlikely to be a bargain this summer.

European shares dipped on Friday, heading for a steep weekly loss, as investors grappled with prospects of a global recession after U.S. President Donald Trump announced sweeping tariffs on trading partners.

European leaders hit out Thursday against sweeping new US tariffs, with the EU saying it was ready to respond with countermeasures while opening the door for last-ditch negotiations.

President Donald Trump dramatically escalated his global trade war by announcing his most sweeping set of tariffs yet on goods from every country that trades with the United States.

Trump says increased tariffs will give U.S manufacturers an advantage. But many sectors lack skilled workers and factory space.

The message from the EU, which has the task of responding on behalf of its 27 member states, is that Europe is ready to negotiate with the US but at the same time poised to hit back too. EU Trade Commissioner Maros Sefcovic aims to talk tariffs with his US counterparts on Friday.

The tariffs announced by U.S. President Donald Trump will put a strain on the United States' exports as well, said German Chancellor Olaf Scholz on Thursday.

EU chief Ursula von der Leyen has vowed a united response to US tariffs, warning of further countermeasures if negotiations fail.