Gints.Ivuskans,
The US economy seemed unstoppable, while that of Europe was apparently convicted. But in a few months, the world has changed.
In November 2024, Donald Trump had just been elected. The Americans were divided and unstable.
But the US market was enthusiastic. The quotations reached historical maximums with the news of Trump’s election, and the value of the dollar rose.
On our Atlantic sidethe sensations were quite different. The quotation of the euro and the value of shares in the European scholarships fell, driven by the fear of the impact of Trump rates In the economy of the old continent, explains the reporter Miles Bryan In the latest episode of Podcast Today, Explained da.
Analysts hoped that the economies and European markets, which had long had a performance lower than that of their counterparts Americans, stay even more backwards.
Now, however, sensations have reversed: American actions are falling, growth projections are unstable and The dollar is losing value. Nonetheless, Many European actions are on the rise.
So what happened?
The answer to this question, as in most current questions, is Donald Trump – specifically, the level of unprecedented antagonism of its administration in relation to Europe.
In the first months, the Trump administration made it clear that it is ambivalent in relation to the military and economic ties with Europe.
The message has been, as Vice President JD Vance said in a recent conversation at Signal, which The US is tired of “saving Europe” – And that is time for the continent to support itself.
The message was clear, and was received by European leadersespecially with regard to military issues, note Miles Bryan.
After the United States minimized Russia’s aggression in Ukraine and launched Questions about your commitment to NATOthe European Union is now pressuring all its members to increase military budgets and issue debt to finance defense purchases.
This type of defense expenses drag with it all kinds of incentive effects, which are Encourage values from Europe and to leave the hopeful economic experts on the EU economic future.
“The symbol of European industrial grandeura, which exports to the whole world, recently went through very difficult timeswith the high energy prices, competition from China and the imminent trade war, ”he says in his turn Henry FoyFinancial Times Analyst, to Today, Explained.
“Now, in Europe there is talk of Convert Factories from Different Automobiles em Tanks Factories“Highlights Foy.
As 25% tariffs on imported carsrecently announced by Trump and which will come into force on April 3, can make this reorientation.
Rheinmetall’s executive director, Germany’s largest defense company, visited a Volkswagen factory that is expected to end in the fall.
Rheinmetall, like its suppliers, workers and partners, will benefit increased defense expenses that most European countries will promote. However, Rheinmetall’s bag appreciation has tripled since January – and worth more than Volkswagen now.
“If the reinvestment is well done, if the orders are made, if it works, can be a large engine for the economy In general, ”says Foy.
And if that happens, Donald Trump will have fulfilled his promise to start a “economic boom like no other“. It just won’t be in America.
Thus, perhaps the US president has to exchange a letter on his emblematic red cap to reflect the likely impact of his governance. Make Europe Great Again.
