Trump's customs policy: Euro to low - what does that mean for Europe?

Trump's customs policy: Euro to low - what does that mean for Europe?

Vienna, Österreich - President Donald Trump once again threatens with a massive trade conflict by announcing tariffs on imports from the European Union. This comes shortly before an EU summit, in which the European Commission President Ursula von der Leyen urgently warned that tariffs would increase business costs, burden employees and consumers and boost inflation. "We don't see anything good in it," said of the Leyen, emphasizing that the EU was ready to take possible countermeasures to defend itself. These threats from Trump could further exacerbate the already tense economic situation, such as vienna.at reported.

euros under pressure

In the meantime, the euro has fallen to the lowest level since November 2022 and at times noted at $ 1.0141, which reflects the concerns of investors about the impending tariffs. Trump's experience -based projects, including European goods, increase the uncertainty in the markets because investors fear that the trade relationships between the EU and the USA could continue to be destabilized. The response to the tariffs to goods from Canada, Mexico and China indicates further measures towards Europe, which has alarmed the market analysts, so Tagesschau.de . Economists warn that the higher costs for imported goods in the United States could also increase inflation pressure, which could result in additional interest rate increases in the Federal Reserve. These interest differences could strengthen the dollar and at the same time put a strain on the export -dependent European economy. At first glance, a weaker euro could increase the competitiveness of European products, but the effects could quickly be destroyed by the tariffs. The unexpected scenario also has an impact on prices in the euro zone, since more expensive raw materials and imported goods could heat inflation, IFO President Clemens Fuest warned and demanded growing attention to the monetary policy measures of the European Central Bank.