Donald Trump’s latest tariff escalation is creating an unintended winner: the euro.
The US president has declared his intention to slap an additional 25% duty on Canadian steel and aluminum imports, bringing the total to 50%. The move, effective from Wednesday, is rattling global trade flows and sparking market reactions that extend far beyond the metals sector.
In the immediate aftermath of the announcement, the euro surged 0.7% against the US dollar, hitting $1.091.
Nigel Green, CEO of global financial advisory giant deVere Group says: “It’s a sharp reminder that currency markets are not just about monetary policy but also about geopolitical realities. And right now, Trump’s aggressive protectionism is tilting the scales in favor of the euro.”
This isn’t just about trade tensions—it’s about the broader narrative of the US economy under Trump’s leadership.
“Investors are beginning to price in the risks of a more fragmented global economy, with supply chain disruptions and inflationary consequences in the US.”
In addition, with German policymakers reportedly closing in on a defense spending deal, and a wider boost in defense spending across the continent thanks to Trump’s rhetoric, optimism is returning to European markets.
“This combination of Trump-triggered eurozone fiscal expansion and dollar weakness is creating the perfect storm for a stronger euro.”
Currency traders and institutional investors are already adjusting their portfolios in response to Trump’s economic playbook.
The dollar index, which measures the greenback against major currencies, has slipped to its lowest level since October—fueling speculation that more weakness is ahead.
A stronger euro makes European assets more attractive.
“Stock markets in Germany and France, often seen as barometers of economic confidence, are already drawing renewed interest from global investors. At the same time, European sovereign bonds are regaining appeal as a hedge against US volatility,” notes Nigel Green.
For those who move swiftly, the Trump effect on currencies is creating clear opportunities.
“Euro-denominated assets—equities, bonds, and alternative investments—are gaining favor as the US faces the risks of economic nationalism,” explains the deVere CEO.
He continues: “The man who has spent years railing against Europe’s trade policies is now inadvertently giving the euro its best run in months.
“Markets are reading Trump’s economic strategy as a reason to reallocate capital away from the US and toward Europe.
“Investors should be prepared for more volatility, but also for strategic opportunities that emerge from these seismic shifts.”
The deVere CEO concludes: “Trump’s trade war is Making the Euro Great Again.”
This is the problem when decisions are made based on someone’s ego. It is surprising that such can happen to the largest economy and mature democracy. I am sure that that Trump will do something like what Hitler did when he finally finds out that he has led his country into destruction.
White ignorance on display, statistical numbers are showing that America has moved 40 years backwards. Systematic racism has also reached an advanced stage. Recession is roaming. #FAFO
Trump has reduced himself to a car salesman….now you can imagine if it was Obama in the White House doing what Trump is doing…..Tesla salesman kikikikiki Politicians are sick in their heads
Trump is a rear exit of a fat sick dying pig.