Barclays Predicts Euro Could Drop to Parity Against Dollar if Trump Wins Elections

Barclays’ Prediction on Euro-Dollar Exchange Rate

If Donald Trump emerges victorious in the upcoming U.S. Presidential elections and decides to impose a significant 20% tariff on European car manufacturers, the euro might plummet back down to parity against the dollar, as per Barclays’ global chairman of research. This forecast was revealed by Barclays’ Ajay Rajadhyaksha during a recent conference call with reporters.

Impact of Tariffs on Euro Value

In Barclays’ analysis, the euro is expected to decrease to $1.05 from its current rate of about $1.08 in a scenario where a 10% increase in tariffs is imposed broadly across Europe. However, if the tariffs specifically target the automotive sector at a rate of 20%, the euro-dollar exchange rate could potentially approach parity, marking a significant decline in the euro’s value against the dollar.