EURO COULD RISE IF EU AVOIDS HARSH TARIFFS: MORGAN STANLEY The euro could strengthen against the dollar if the EU avoids harsh tariffs from Trump, Morgan Stanley analysts say in a note. "Our base case includes gradual, targeted tariffs on the EU later in 2025, preceded by a reinstatement of the Section 232 steel and aluminum tariffs," they say. Such targeted tariffs would unlikely have a significant impact on euro-area economic growth. Morgan Stanley continues to advise buying the euro, targeting a level of 1.08. The euro is last up 0.2% at 1.0316.