Trump's comeback makes euro sink: What's next for European money?

The euros value dropped hard after Donald Trump showed strong comeback signs in polls‚ hitting $1.065 versus dollar and giving up its gains since spring

German economic troubles make things worse - about 41.5% of companies dont have enough orders (the worst since 2008-09 crisis). The countrys car-makers and factories face big problems due to China slow-down and energy costs: their situation might get even more difficult with possible 10-20% US tariffs

Trade between US and Germany is huge - last year it was worth €252.5bn (just a bit less than German-China trade). Silvia Ardagna from Barclays thinks companies will slow down their plans: “business investment and hiring will likely delay due to tariff uncertainty“

The ECB faces a tough choice; inflation is still high but growth looks weak. Interest rates in Europe (now at 4%) stay lower than US ones (5.5%) which makes euro less attractive. James Reilly from Capital Economics says: “We see euro going down to $1 by late-2025“

Here are main issues that push euro down:
* New US tariffs might hit German exports hard
* Chinaʼs property market problems affect German trade
* ECB might need to cut rates faster than planned
* Dollar gets stronger due to higher US rates

German economy - once Europes powerhouse - hasnt grown past its pre-covid size yet. With Trumpʼs possible new 60% tax on Chinese goods‚ experts think German exports to China could drop 6% by 2030 versus current forecasts