Trump's tariffs and strong euro act as double whammy for European companies

Vehicles from the German group Volkswagen ready for shipment from the Emden plant (Germany) on May 20, 2025. INA FASSBENDER/AFP

When the dollar began to slide in April following the announcement of so-called "reciprocal" tariffs by Donald Trump, many voices across Europe started to wonder: Could the euro's moment in the global spotlight be in sight?

In the face of erratic decisions by the United States − which is amassing colossal debt − and a White House openly challenging the independence of the Federal Reserve, the single currency could offer a welcome haven of stability. Christine Lagarde, president of the European Central Bank (ECB), even devoted a speech to this prospect: "The shift under way also offers opportunities for Europe to take greater control of its own destiny and for the euro to gain global prominence."

Subscribers only

Trump's tariffs take effect, ushering in a new world trade order