As early as November 2024, you shocked your thoughts. Trump has just been elected. Americans are divided and instability. But the stock market is not: Very excited. Stocks hit an all-time high in the news, with the dollar’s value soaring.
The atmosphere throughout the Atlantic Ocean is very different. European stocks fell, Driven by fear of Trump tariffsjust like The value of the euro. Analysts expect European economy and markets to perform for a long time, with their U.S. counterparts Lag further behind.
But now, the atmosphere has turned over: U.S. stocks are falling, growth Predictions are shakythe US dollar is losing value. At the same time, many people European stocks rise. What’s wrong?
Like most people today, the answer to this question is Trump.
Especially the level of hostility of the Trump administration towards Europe. In the first few months of the government, it was obvious that this was contradictory to military and economic ties with Europe. As Vice President JD Vance said Recent Signal ChatAmerica is tired of “saving Europe”, and it is time to stand alone.
This information has been received, especially in military affairs. After the United States Minimize Russian aggression in Ukraine And doubts about it Commitment to NATOthe EU is now pushing all its members Increase military budgets and issue debts to fund defense purchases.
This defensive spending has the effects of various Didi stimulus, which are juiced up in Europe’s stock market and give economic experts hope for the EU’s economic future.
Take the German automobile industry as an example.
“The great symbol of European industry has been exported all over the world [has] Recently, with China’s competition and this looming trade war, it has experienced some very difficult times lately. ” Today, I explained. “You are now seeing a discussion about converting a sealed car factory to a tank factory.”
Trump’s recent announcement that a 25% tariff on imported cars will come into effect on April 3 could make such a repurposing more likely. CEO of Rheinmetall, Germany’s largest defense company Visit Volkswagen Plants Plans to close in the fall. Rheinmetall and its suppliers, workers and partners will benefit greatly from the increase in defense spending. Its valuation has tripled since January and is now worth more than Volkswagen.
Europe’s hub against defense may end up with more than bites. There has been some arguments about the details. Especially about who picks up the tag.
“[But] If you can reinvest correctly, order the order to make it work – it can be a huge driver for the entire economy. ” Foy said.
If that happens, Trump will be good He promises to usher in the economy “Prosperity, nothing else.” It’s just a prosperity in Europe, not the United States.
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