The proposal would introduce a 10% duty from February 1, rising to 25% by June if no agreement is reached, targeting economies including Germany, the UK, France, and several Nordic states. The move revived talk of retaliation in Europe and put last year’s trade truce at risk. 

The dollar index eased toward 99, retreating from recent highs as the tariff threat weighed on sentiment. While the greenback initially firmed against the euro and pound, it later reversed, weakening most notably versus the yen and Swiss franc, as investors reassessed the economic fallout of a renewed trade dispute. 

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