A new era with an old president, that’s how you could describe the last few weeks. Immediately after taking office, Donald Trump signed over 100 decrees that are intended to make some of his campaign promises come true. While his new migration policy has had very little impact on the global economy, the tariffs he wants to impose on Canadian, Mexican and Chinese products will certainly have an impact. He also has something planned for the EU and it is to be expected that he will also increase tariffs on European products. What he forgets, however, is that these measures will also have a very strong impact on the USA and the population there, because with higher tariffs, the well-known products that Americans love so much will also become more expensive, which will certainly stir up a certain resentment among the population. The initiative against Russia regarding the Ukraine crisis to impose further sanctions is also no guarantee that the war will end soon. However, there is also some positive news, the situation in Gaza has at least calmed down to some extent, let’s see how long that lasts.
The actions of the new old president are having an effect on the market, and there have been some fluctuations in recent weeks.
The ECB’s measures to further reduce interest rates also had a major impact on the euro/dollar exchange rate. Even if no one will admit it and people only talk about inflation, the euro has been devalued by more than 10% in the last year.
The next few weeks and months will show how the measures of the new legislature in the USA will continue to affect things. We can only hope that the annexation of Greenland and the integration of Canada into the USA remain just a pipe dream.
