Donald Trump’s ‘America First’ policy leaves deep marks on the international monetary structure and European export strategies. Trump wants to protect the US economy against supposedly harmful cheap imports through a strong dollar and planned new tariffs. But what does this mean for the euro and exports from Europe?
Financial market expert Oswald Salcher explains: “A strong dollar is actually not that good for the US economy. Normally, exports benefit from a weaker currency, but Trump is pursuing strong protectionism. With its ‘America First’ approach and new import duties, the aim is for the US to become self-sufficient, but this is aimed at European exporting countries. Donald Trump pursues a clear goal: protecting his own economy and reducing cheap imports from abroad.
Particularly crucial for German carmakers, Salcher says: “If protective tariffs come into the car industry now, it will be very difficult for exporters like Mercedes and BMW.” While Tesla is celebrating and rose 17 percent in one day, Mercedes saw its share price drop 17 percent on the same day. A clear sign, says Salcher: “Export companies will have more and more problems under Trump.”
Trump and Musk as a crypto dream team?
Not only the dollar, but also the crypto markets are experiencing turbulence. Bitcoin recently hit a new all-time high, which many attribute to Trump’s pro-crypto statements. “Trump has described himself as the crypto president,” Salcher explains. “The euphoria on the stock markets is great and Bitcoin is moving towards $100,000.
But Salcher warns: “Cryptocurrencies, especially Bitcoin, are designed to become independent of national banks. That actually contradicts what the US wants to achieve.” Despite the euphoria, it remains unclear whether the ‘crypto nation’ can actually establish itself. The expert on the financial markets regards this as a ‘saber rattling’ rather than a realistic strategy. Donald Trump and Elon Musk – two giants who promise big things for the US.
But financial market expert Salcher warns: “The two could raise too high expectations among the population that will ultimately not be met.” realizing that even Trump and Musk can’t work magic. Salcher summarizes: “Disappointments can then increase.”
He also points to the unforeseeable events of recent years, which can call into question any planning: “Who would have thought that a crisis would break out? Or that there is war in Ukraine?” In times of extraordinary events, the question arises whether Trump, Musk and Co. to lead the country in a stable manner.
When asked what type of investment he would personally choose for his savings, Salcher is pragmatic: “I would take a very broadly diversified ETF.” According to Salcher, an ETF that invests globally in different sectors, countries and currencies offers stability because: “The global economy will continue to grow in the future because people always strive for perfection and improvement.”
Watch the entire interview in the video above!
We explain what Austria is currently dealing with: the latest news conversations with politicians and experts.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
