The US dollar has strengthened significantly as former President Donald Trump’s tariff threats against Europe weigh on the euro, pushing it to near a two-year low. The dollar’s rise reflects its status as a safe-haven currency during times of economic uncertainty, with investors wary of the potential for a trade war between the US and the European Union.
The euro fell to $1.05, its lowest level since early 2023, as markets reacted to the possibility of new tariffs on European goods. Analysts warn that such measures could disrupt global trade, increase costs for businesses, and slow economic growth. “The tariff threats have created a cloud of uncertainty,” said an economist. “This is driving investors toward the dollar and away from riskier assets.”
The situation underscores the fragility of global markets in the face of geopolitical tensions. As negotiations between the US and EU remain uncertain, the dollar’s strength and the euro’s weakness are likely to persist in the near term.
