Part 3/8:
However, Trump's protectionist "America First" policy diverges significantly from the Biden approach, focusing instead on reducing America’s dependence on all allies. This could create an unintended consequence where strained relations between the U.S. and Europe push the EU closer to China, the U.S.'s principal global rival.
As Trump referenced a perceived trade deficit of over €290 billion with the EU—an assertion without empirical backing—the stakes intensified and analysts quickly noted the detrimental impact tariffs would have on the Euro and European markets. Within days, the Euro had dropped to lows not seen in two years, with forecasts suggesting a potential equalization of value against the dollar by 2025.