The euro collapses, the currency falls, and Donald Trump declares victory in the US elections | World

Euro hits four-month low after Donald Trump Trump announced his victory in the US electionsfalling nearly 2% as concerns over U.S. tariffs grew.

The US dollar index jumped 1.5% – its biggest jump since March 2020 – hitting the euro hard amid concerns about US tariffs on European goods and potential. interest rate hiking in the USA.

The currency was down nearly 2 cents at 7:40 a.m. GMT, hitting a four-month low. However, European stock futures rose, including the pan-European Stoxx 600 and Germany’s DAX.

Economists are already sounding the alarm that a Trump victory could lead to higher prices for consumer goods through his proposed trade tariffs, tax cuts and tough stance on immigration.

Moments after his victory, which he called “the greatest political movement of all time”, the euro fell sharply, suffering its worst day since COVID-19 pandemic.

Nigel Green, CEO DeVere GroupTariffs act as a tax on imports, which is inevitably passed on to consumers.

“While Trump’s stated goal is to protect American industry, the effect of tariffs is to raise the cost of a wide range of products. Products from electronics to clothing are becoming more expensive as manufacturers and retailers pass on the additional costs to consumers.

“We believe the impact of Trump’s tariffs will be clear: higher prices for everyday goods. While the goal is to protect American businesses, the reality is that these tariffs could contribute to the very inflationary pressures that Trump promises to ease.”

Trump’s economic policies could lead to the Federal Reserve (the US central banking system) adopting stricter policies to further support the dollar.

Otavio Costa, macro strategist at Crescat Capital, warned that The Federal Reserve is now under pressure to cut interest rates to strengthen the dollar..

He wrote on social media X: “The Fed is forced to cut rates despite clear signs of falling inflation. This is one of the most challenging conditions for the US dollar that I have seen in my career.”

There is also hope that the Trump administration can ease current economic sanctions on Russia, leading to a surge in shares in Vladimir Putin’s country.

In the auto industry, Trump has promised to cut taxes, energy costs and red tape for foreign automakers if they increase production in the United States.

However, it could also result in “very significant tariffs” on non-U.S.-made vehicles. Jacob Kirkegaard, a senior fellow at Brussels think tank Bruegel, said car makers should be “very concerned.”

He said Far East: “All the investments that German automakers have made in the US in recent years will not save them. Due to the level of investment and integration made in recent years, they are likely to face a larger supply chain shock than most. “

Trump’s Vice President J.D. Vance emphasized the importance of the US economy in his victory speech in West Palm Beach, Florida. He said: “We have just witnessed the greatest political comeback in the history of the United States of America.

“Under the leadership of President Trump, we will never stop fighting for you, for your dreams, for the future of your children.

“After the greatest political comeback in American history, we are about to lead the greatest economic comeback in American history under the leadership of Donald Trump.”